FX:XAUUSD stops after a strong rally. A new ATH = 2195 is formed, after which the market starts the correction phase. The support 2175 is broken and the price tests 2150. There is a probability of continuation of decrease but after resistance retest.
The fundamental background has been maintained since Tuesday. Yesterday we got CPI positive for the dollar, which temporarily strengthens the index and negatively affects the gold. After the 2175 breakout, the market gives us a move of almost 240 pips. Fundamentally, there is no important news today, so the market is influenced by yesterday's data. On H1, consolidation is forming below 2161. Buyers are trying to buy back the fall, but sellers do not let prices go above 2165. In this case, the most likely scenario may be a shakeout (false breakdown of 2165) and liquidation of sellers before a further decline to 2144 - 2100.
Resistance levels: 2165, 2175 Support levels: 2144, 2125, 2100
The correction phase is most likely not over yet. The price may test the resistance before a further decline with a negative fundamental background
Hope it's ok to ask but what levels are you looking at beyond 2175? It's getting interesting now :))
FOMOMANIA
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My consensus: current risk not worth the potential reward unless you'd place very widely set apart targets ... just my humble onion. So it's observation time for now :)
RLinda
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@FOMOMANIA, You mean we shouldn't sell against the trend?)
FOMOMANIA
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@RLinda, with the current resistance levels we're watching it's tricky yes... 2165 and 2175 are both realistic for now ... but I mostly meant not trading from the previous tests around 2161/2 from where there was no obvious signals which way the price would go...
RLinda
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@FOMOMANIA, Yes, resistance levels are weak. But, with proper risk management, using a short stoploss, we can open trades in our case.