XAU/USD is presently correlating closely with DXY, which is normal for these instruments. The proof of this correlation is obvious when their charts are overlaid. Here we look at these two instruments using standard Elliott wave theory and the RSI.
The purpose is to ascertain the future direction of each.
The 30 min XAU/USD chart here is showing the break up from the symmetrical triangle, which is seen as Minor wave 2. The break out has developed the Minute waves [i] and [ii] and indicates that Minute wave [iii] of Minor wave 3 is commencing.
To assist the expected bullish momentum for XAU/USD it would be expected to see a complementary move weaker for DXY. The 5 hourly chart of DXY here sees a Primary degree correction in progress and now within Intermediate wave (C) and portending considerably more of the same for both of these instruments.
LINK: DXY with Cycle degree correction underway
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