Comex Gold Futures (GC) Technical Analysis – August 10, 2016 Forecast

December Comex Gold futures spiked higher early Wednesday in response to a sharply lower U.S. Dollar. The dollar is selling off in response to Tuesday’s weaker-than-expected productivity report. Traders have also reduced the chances of a Fed rate hike before the end of the year.
Technically, the main trend is up according to the daily swing chart. A trade through $1374.20 will signal a resumption of the uptrend. A move through $1335.30 will turn the main trend to down.
The main range is $1318.50 to $1374.20. Today’s rally is pulling away from its retracement zone at $1346.40 to $1339.80 which is the new support zone.

The short-term range is $1374.20 to $1335.30. Its retracement zone at $1354.80 to $1359.30 is currently being tested. This zone is important because sellers are going to try to form a secondary lower top and buyers are going to try to drive the market through this zone in an effort to solidify the importance of the $1335.30 secondary higher bottom.
Based on the current price at $1356.60, the direction of the market the rest of the day will be determined by trader reaction to the short-term 50% level at $1354.80.

A sustained move over $1354.80 will indicate the presence of buyers. This could create enough upside momentum to fuel a rally into the short-term Fibonacci level at $1359.30 and the downtrending angle at $1362.20. This angle is the trigger point for an acceleration into the next angle at $1368.20.
The last downtrending angle before the $1374.20 main top drops in at $1371.20 today.
A sustained move under $1354.80 will signal the presence of sellers. This could lead to a quick break into the steep uptrending angle at $1351.30. This is the trigger point for a break into the main 50% level at $1346.40 and the uptrending angle at $1343.30.

Watch the price action and read the order flow at $1354.80 today. Trader reaction to this level will tell us if the buying is getting stronger. A weaker dollar will help underpin the market today.
Read more - https://www.goldcruderesearch.com/comex.php