DailyFX: "FOREXAnalysis: Gold traded to 1180 last week, not far from the 200% extension of the 1322-1488 range (1156) and July 2010 low (1157). I noted in the Daily Technicals that “it’s been gold’s tendency since September 2012 to ‘crash’ for 2-4 weeks and consolidate for at least a month.” Gold stabilized this week after a 2 week crash so recent action fits the pattern. More importantly, the rally from the low is impulsive (see next chart) and the decline corrective. The post NFP drop stopped just below the high volume area of 1210 as well. It’s worth noting that gold has found important lows in July since 2009 and that COT positioning is at levels last seen in 2005.
FOREX Trading Strategy: Triggered long at 1215, stop 1180. In Friday’s webinar, I discussed how gold gold’s recent action is exactly what to look for in a turn."
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