Gold bottomed at MM2 on Friday after the release of the Flynn news. It’s the bottom of the range so it’s not really a double bottom because there was no bearish trend though we can trade it like a double bottom. We understand the relationship between Gold and Treasuries and the Greenback. We also understand that Treasuries, Gold, Yen and Chf are all safe havens in times of risk-off. Note that price action in Treasuries indicates further risk-off ahead, which would support a further bid in Gold though could also mean further strength in safe-haven currencies.

Gold H1

A clear double bottom at MM2 followed by a higher high. A fib of the higher high places the 61.8% fib retracement at the role reversal of the double bottom. This is where Bulls are going to buy. The target is MM4. The second higher high is just drawn off price reaching the fib extension off the double bottom 61.8% and then making a higher low at the next 61.8% retracement of the second higher high. The extension of that 61.8% gets price up to MM4.

US10Y Price H1

Double bottom at MM2 followed by a higher high. Price is currently at the role reversal of the double bottom and the 61.8% is a few points lower. I have drawn the higher highs and higher lows in the same way I did for Gold.

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