In our article dated Jun 29, 2015 earlier, we mentioned "..expect price to plunge but no deeper than 50% retracement of the pennant pole.." Unfortunately it did as Greece gave in to the austerity demand of the troika and now the likelihood of a deeper retracement remains. It would be interesting to see if 61.8% retracement - around €1,009.55 - of the pennant pole will hold this week. If it did, then we should be seeing a reversal pattern on the daily and/or 4 hour chart.
XAU/EUR Chart:
As Barclays commented today, Thursday July 23, 2015 - "The size of the balance sheet of the Eurosystem, is compared with a monthly target consistent with a gradual and regular increase towards €3trn by Q4 16"; we concur and hold our views that euro holders should start loading gold as part of their investment portfolio as euro dilution is imminent.
Halal Traders would like to see a bullish hammer, morning star, or three white soldiers, before we decided to go long.