Gold Price Analysis: XAU/USD meets critical resistance, $1,700, bears waiting to pounce

Gold reaches 1700 level, bears looking for bearish technical conditions for fresh entries.
4HR conditions need to ripen below trendline support, buy stops will go above there.

Ross J Burland FXStreet

Gold has reached a fresh high for the US session in its correction within a series of bearish impulses.

At the start of the week, the bearish case for gold was as a result of the following analysis: Chart of The Week: Gold bears burst into the barroom-brawl zone.

The price of gold had continued within the bearish trajectory in the open highlighted in last week's analysis here: Gold Price Analysis: XAU/USD bearish case for the contrarians out there.

However, a correction of the last daily bearish impulse was expected to reach 1700 as a golden Fibonacci retracement, the 61.8%. This has indeed played out today.

The following are a series of charts that path the way for a potential bearish extension in a fresh impulse towards liquidity:

Market structure

61.8% Fibonacci level reached

4HR trendline intact, price needs to break below it

MACD is negative, price is below 21 moving average and has been rejected by the hard resistance and a 61.8% Fib retracement level.

Bearish targets towards liquidity

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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