- Bullish longer-term trajectory stalling as market sentiment turns positive.
- Bears taking control towards a weekly 1620 downside target.
- Barroom-brawl could make for a choppy continuation to the downside.
The price of gold has continued within the bearish trajectory highlighted in last week's analysis here: Gold Price Analysis: XAU/USD bearish case for the contrarians out there.
With the price now in a confirmed bearish trend, according to MACD, bullish corrections would be expected to be short-lived while respecting the resistance structure around 1700.
Further extensions are expected towards the next major support level and higher volume-profile nodes in the 1620/40s.
Weekly Chart: Bearish near-term, bullish longer-term
Daily Chart: Bears break below prior support, enter the barroom brawl
The barroom-brawl zones are otherwise known as consolidation, often as a consequence when key levels of support and resistance are broken and around key levels. Traders can be caught out here and can make the mistake of getting trapped or involved in a messy chop of prices moving up and down in non-predictable price action.
Ideally, bears will have their stops above the support and resistance structure, targeting the 1620s.
Test and failure at trendline resistance confirms the bearish trend
On a pullback, at this juncture, sell-limit order at resistance with stop loss above structure would be preferable to selling at recent lows.
4HR chart shows near-term resistance
As can be seen in the 4HR time frame, MACD is bearish, price is below 21 and 200 bearish moving averages and cross-over. The 50-day moving average meets old support and the 50/61.8% Fibonacci retracements of the prior bearish impulse should offer resistance also.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.