XAU/USD Price Analysis: Bears in the driving seat at critical resistance

Gold meets critical resistance on the pullback.
Bulls seeking a break of prior closing highs.

Ross J Burland FXStreet

Gold prices have been consolidated since meeting the prior support after the break of the daily dynamic counter-trendline resistance.

The following illustrates the two scenarios from the daily perspective in a top-down analysis.

Monthly chart

The price is testing the monthly support and would be expected to move higher.

Weekly chart

If the price breaks the resistance, the wick would be expected to be filled in.

Daily charts

The bullish outlook comes to life above the current daily resisted, as illustrated in the chart above.

The bearish outlook will pick up momentum on a break of the prior lows and a fill of the wick.

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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