[LFX]

Gold


• Last week’s closing price on Gold again reflects some indecision at the trend highs. This increases the chances of further consolidation / short term correction down.
• While the overall uptrend is still in place we must appreciate that markets rarely move in a straight line towards their targets.
• Gold has consolidated over the past few sessions now and previous corrections suggest that short term weakness can still be seen over the coming days.
• The previous two corrections over the past three months were both ‘ABC’ corrections down and approximately the same magnitude (circled in green)

o Aug 6th–Aug 17th: Gold corrects down from $971.25 to $929.70. An ABC correction down of $41.55
o Sept 17th–Sept 25th: Gold corrects down from $1,023.85 to $984.70. An ABC correction down of $39.15

• This averages $40.35 which would suggest a correction to $1,030.05.

Is this again giving a warning sign for EURUSD in the short term?

• A move down to $1,030 on Gold would likely mean further consolidation / short term weakness on
EURUSD.