XAUUSD GOLD Make or break

The breakdown of the descending channel started April 2018 failed and price came back into the channel while forming a likely bear flag which also broke late on Thursday. Although price has been consolidating in the 1197-1205 for 3 days before moving higher, I do expect price to respect the bear flag breakdown and retest mid August lows of 1160. if 1200 holds, we may see price hitting 1220 area which would be a big test for LT bulls.

DXY renewed strength gives me confidence in the latter scenario. I have bullish bias towards dollar which would reinforce the bearish case here as long as correlation stands.