XAU/USD: Broken below key support

Chris Capre 2ndskiesforex

Price Action Context

Following the all-time high in August, the price of the precious metal has been consolidating, pulling back $270 in the process. Inside of this pullback/range price has been printing both lower highs and false breaks to the upside suggesting continued bearish pressure. On the 23rd a strong bearish impulsive move cleared the key support around $1850.

Trending Analysis

Short-term bias is bearish and weak pullbacks into the broken support, which now should act as resistance can offer potential short-term selling opportunities whilst long-term bulls can look for potential trading opportunities around the next area of support.

Closest Support & Resistance Zones

Resistance: 1850 - 1870
Support: 1730 - 1765

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Author

Chris Capre

2ndskiesforex

Chris Capre is a professional forex trader and mentor specialized in Price Action trading, and the Ichimoku Cloud.

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