Note: The S/R levels (i.e. likely bank trader order levels) as depicted in their respective timeframes in this and prior articles have not changed, and will probably NEVER change regardless what happens in financial markets. What follows is my own world view, developed from an institutional trading career dating back to 1995.

The dollar is firmer overnight after the ISM PMI number for services showed a better-than-expected print.

As per the PMI chart above, the spike in the PMI looks like just another correction spike in a downtrend, but that didn’t stop gold to drop below established bids around 1484-90.

XAUUSD is now bouncing off 1484, and that level looks pretty solid. Gold has crossed more than 3 sets on the way down on the M15 charts, which means a correction back up is more than likely.

Check out our S/R levels below.