Gold Price Analysis: Bulls testing bear's commitments at last resort resistance

The price of gold has moved up to test a key resistance structure.
A 1:8 R/R trade setup example has been triggered on the move as the last resort for the bears.

Ross J Burland FXStreet

Gold prices are testing the bear's commitments and resilience on failed downside price action.

Gold and DXY technical analysis

A bullish case for the USD has been in the making considering a number of intermarket implications and price analysis:

As for gold, in previous analysis, it was stressed the dollar was in the driver's seat and to monitor for a 5th wave to the upside.

The chart above shows that the dollar is not going down without a fight.

If the support holds in the DXY, then this can be beneficial to the following downside analysis on gold and subsequent trade setup:

The chart above is offering an illustration of how a 1:8 risk to reward trade to the downside can be placed with a stop-loss protecting against a follow through to the upside.

A break of the resistance opens risk back to the upside.

This analysis is a continuation of yesterday's setup which resulted in a breakeven outcome with the price moving adversely above structure and the target being moved to the entry point to protect capital.

Gold Price Analysis: XAU/USD bears taking over below structure for 1:3 R/R prospects

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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