FX.co ★ GOLD Selling Pressure Intensifies!

GOLD Selling Pressure Intensifies!

Gold is trading in a critical support area, a valid breakdown through this area suggest selling as the yellow metal should go for new lower lows. It is trading at $1,864 at the time of writing and is fighting hard to stay in the buyer's territory.

USDX's recent bounce back has forced the gold price to drop again. The USD's appreciation versus its rivals could bring a broader corrective phase on XAU/USD in the coming period. USD needs a bullish spark and it could receive it from today's data. The US Unemployment Claims could drop to 707K in the last week, the CB Leading Index is expected to increase by 0.7%, while the Existing Home Sales could drop to 6.45M

XAU/USD Valid Downside Breakout?

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XAU/USD has dropped under the lower median line (lml) of the ascending pitchfork and below the $1,862 static support. The $1,862 - $1,848 area is seen as a critical support zone, a valid breakdown below the $1,848 suggest selling and validates a deeper drop.

The price has increased a little in the short term, but it was rejected by the median line (ML) of the descending pitchfork. Its failure to jump and close above the $1,900 and the PP ($1,901) has invalidated further growth.

  • XAU/USD Trading Conclusion

The price is located within a support area, so you should wait for a bearish closure under the $1,848 level before deciding to sell with an immediate downside target at the lower median line (LML). Actually, the $1,800 is seen as an important near-term target, obstacle.

The bearish scenario could be invalidated by a huge bullish engulfing or by a false breakdown with great separation under the $1,848 level.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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