XAUUSD : What's Next?

Following a reverse in a strong bullish trend XAUUSD has broken below the 200 day EMA with 2 wedge breakouts on the 4hr and Daily timeframes that saw us go from 1960 at the start of the month to 1843 the current price and now with the break above the 200-day moving average which is seen as a bullish signal for gold, as it indicates a long-term uptrend in prices. We then had it break above the Hull suite which is a type of moving average that is designed to be more responsive to current price movements than traditional moving averages, so a break above its red line on the 4-hour timeframe may also be seen as a bullish sign. If there is enough buying pressure from market participants following these technical signals, gold prices may continue to rise, potentially breaking through key resistance levels and reaching higher price targets.

If the breakout above the 200-day moving average and the red line on Hull suite on the 4-hour timeframe turns out to be a false breakout and XAU/USD is actually retesting a key Fibonacci level, it is possible that prices could reverse and start to decline. If prices fail to stay above the key Fibonacci level and instead break below it, we may interpret this as a bearish signal, potentially indicating that the upward trend in gold prices may be losing momentum. If prices continue to decline and break through the 0.5 level, this may suggest that there is further downside potential for gold prices in the near term to reach 1720 as indicated on the chart. The key here is to be patient and wait for golds price action to decide then trade with the trend.