(Click on image to enlarge)
Last month, I featured this Gold / US Dollar ratio chart in an article warning of the potential for a trend reversal.
While the broader bullish trend is still intact (higher lows since 2015), it could be time for Gold to take a breather.
Looking at today’s “updated” chart, we can see that the ratio formed a “doji star” candle last month with momentum running at peak levels (concerning). And this month we are seeing follow through to the downside (in the form of a red candle).
As well, this bearish reversal pattern comes at a key long-term price resistance level, marked by (1) and (2).
Keep an eye on this doji star topping pattern. This month’s decline is sending a concerning message to Gold bulls!
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