Gold Price Analysis: XAU/USD meets critical resistance, $1,700, bears waiting to pounce
|- Gold reaches 1700 level, bears looking for bearish technical conditions for fresh entries.
- 4HR conditions need to ripen below trendline support, buy stops will go above there.
Gold has reached a fresh high for the US session in its correction within a series of bearish impulses.
At the start of the week, the bearish case for gold was as a result of the following analysis: Chart of The Week: Gold bears burst into the barroom-brawl zone.
The price of gold had continued within the bearish trajectory in the open highlighted in last week's analysis here: Gold Price Analysis: XAU/USD bearish case for the contrarians out there.
However, a correction of the last daily bearish impulse was expected to reach 1700 as a golden Fibonacci retracement, the 61.8%. This has indeed played out today.
The following are a series of charts that path the way for a potential bearish extension in a fresh impulse towards liquidity:
Market structure
61.8% Fibonacci level reached
4HR trendline intact, price needs to break below it
MACD is negative, price is below 21 moving average and has been rejected by the hard resistance and a 61.8% Fib retracement level.
Bearish targets towards liquidity
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.