Senior Trader Daily Update 21 November 2017

Good morning everyone.
 
Having posted strong gains on the back of Greenback weakness (particularly against the JPY) on Friday, news on Monday that a breakdown in negotiations between the various parties in Germany that were attempting to form a coalition government resulting from September’s election, saw the precious metals rally deflate quicker than the Hindenburg, as the EUR was kicked to the curb and investors were herded back to the safety of the US dollar.
 
It’s a truncated trading week due to the Thanksgiving Holiday in the US on Thursday but when all is said and done, XAU/USD remains settled within a well-defined, sideways trading band between USD 1265 – 1295 (which commenced around mid-October), while XAU/AUD’s topside breakout through the triangular congestion resistance at AUD 1668 and clearance of the early September high at AUD 1685.00, leaves a continuing advance towards the June 6th high at AUD 1728.00 possible and probable (any mean-reversion back towards the 21 Day moving average at around AUD 1670.00 notwithstanding).
 
XAU/USD remains strongly (inversely) correlated with the USD/JPY at present, during intraday trade.
 
Good luck.
 
Regards,
Andre