Gold Monthly Chart (May 2017)
If you don’t understand this chart, then you will need to go back to Forex basics. However, this is an idea of what would happen:
In the illustration above, you can see that we can a breakout upwards of the triangle formation, and how high the breakout was equaled to the height of the triangle.
Looking back at the monthly Gold chart, we can see a triangle formation being formed, and look at the height of the triangle, we can see there is a large pip range. This correlates with what is going on the in the economy and markets. With Trump in power, the power struggle between the countries in the Middle East, nuclear uncertainty is North Korea, and an environmental catastrophe looming around the corner due to the global warming, a breakout is to come.
With that, my predictions lie that Gold will surge up. As with any uncertainty in the market, Gold is bought as a safe haven currency. In addition, with the current situation with the US Dollar, where all the data has been bearish but the currency has continued to strengthen, a large bearish run is soon to come. With NFP coming on the 5th of May 2017, and if the data is worse than expected again, then we can see a large drop in the US Dollar, further propelling Gold higher.
Will be waiting for a breakout to occur and catch the ride with my FX Family.