Gold Price Analysis: XAU/USD is testing a critical daily support

XAU/USD is in the hands of the bears, but it could be a short-lived victory.
The bulls are seeking a discount from a solid support.

Ross J Burland FXStreet

Gold is testing a critical area of support and the bears remain in control at this juncture.

However, there is a probable cause for the upside on failures at a more solid area of demand and the following analysis illustrates just that.

Daily chart

The support is a solid structure that would be expected to hold and drive the price through the near term resistance.

If the structure gives out, there is a compelling case for the downside to retest a more reliable area of demand.

From a 4-hour perspective, Momentum is with the bears, and the price is pressured below the 21-EMA, but an upside correction to retest prior resistance is on the cards.

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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