The US Dollar Index closed higher for the week, with weekly charts suggesting it is likely to trade within a broad range of 96.8 to 98.8 in the coming days. On the daily chart, Friday's session formed a doji candlestick, indicating a temporary balance between bullish and bearish forces and a market deadlock. It is anticipated that trading on Monday will initially seek a breakout within the relatively narrow range of 98 to 97.5. Investors should closely monitor the direction of a breakout from this range to gauge the short-term trend.
Gold prices staged a V-shaped reversal this week. After testing lower levels, the weekly chart showed a strong rebound, closing as a bullish candlestick with a long lower shadow, which suggests there is momentum for further gains next week. From a technical perspective on the weekly chart, key support has shifted higher to near 5020. A retest of this level would present a favorable opportunity for long positions. The first significant resistance above is located around 5146, which also coincides with the strong Fibonacci 0.618 retracement level. Whether further upside can be achieved this week largely depends on the market's ability to break through this level. If 5146 is not convincingly breached, gold prices may still face selling pressure and continue a sideways pattern. However, a strong breakout above this level would open the door for the bulls to target the 5200-5300 zone, with stronger resistance further up around 5451, where considering short positions might be appropriate. On the daily chart, spurred by news on Friday, gold prices experienced a strong rally in the latter part of the session, closing bullish and confirming short-term strength. Operationally, the strategy for Monday should primarily focus on buying on dips. The hourly chart indicates initial support around 5072, which would be the most ideal area for entering long positions. However, given Friday's high closing price, a pullback to this level on Monday may be unlikely. If the market shows stronger momentum than expected, consider entering light long positions near 5097. The initial upside target is 5146. A break above this level could lead to further gains, while a rejection at resistance might present an opportunity for short positions. Monday's Operational Reference: 1. Aggressive traders can look for signals to enter long positions within the 5100-5072 range, targeting 5146. 2. If the price tests the 5146 area for the first time and fails to break through decisively, consider short-term short positions. 3. Reviewing Friday's strategy: short positions were initiated at 5008 during the Asian session, long positions at 5006 during the European session, short positions again at 5040, and another long position at 5015. The overall rhythm was well-managed.
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