The below is the hourly chart of the XAUUSD. The index is reacting off of the R1 pivot level. This level overlaps with price support turned resistance. Moreover, we note that there are still a number of stale bulls above current levels which may add to resistance. The stochastic has rolled over and is now negative. If the EMAs cross bearishly it may signal further weakness ahead, particularly is they develop angle and separation. We continue to monitor.
Past performance is not an indicator of future results.
CHART SOURCE: FXCM MARKETSCOPE 2.0