Metals in consolidation – Lower USD/CNH supportive for Gold [Video]

Gregor Horvat Wavetraders

Gold has come down quite a lot in the last few trading days, and we're now tracking a few different Elliottt wave interpretations—but all suggest this is a contratrend movement from the April highs. There could be a potential a-b-c deeper pullback in progress, or even a triangle if the 3200 support level holds. However, I’ll be watching this market closely—if we suddenly see a spike below 3200, then I think the correction could come to an end much earlier.

It's also important to keep an eye on USD versus CNH these days, where we have five waves down from the recent highs. As you know, in broader cycles, when the Chinese yuan strengthens, it tends to be positive for metals. Still, I personally prefer silver over gold at the moment—it has a much cleaner structure on the 4-hour timeframe.

USD/CNH vs Gold

Gold intraday

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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