#XAUUSD Elliott Wave Analysis

Every major pair has a lock right now. DXY is that key. Look at the chart above and you'll see why gold's next move isn't really about gold at all.

The Dollar Index just finished Wave (3) at the highs and is now carving out a corrective Wave (4). Price tapped the 0.382 retracement at 100.877 and is currently holding above the 0.5 level at 100.592. Invalidation sits at 100.558.

As long as that level holds, DXY is building the base for Wave (5) higher.

So think about what that means. If the Dollar Index is gearing up for its final impulse higher, gold doesn't get a free pass to keep climbing. A stronger DXY means headwinds for XAUUSD. Forget the XAUUSD chart for a second, this is a correlation problem.

Watch 100.558 on DXY like your life depends on it. Break it, and the whole board flips. Hold it, and don't be surprised if gold starts losing steam even without a clean reversal pattern of its own.