FX:XAUUSD is being held very tightly within the downward correction channel. The fundamental background on the market is weak, at this time the dollar is growing, which in general negatively affects the price of metal.
Set-up on H4 shows us a strong resistance on the market. In general, this is due to the negative fundamental factor because of the economic news, which generally supports the dollar index. There is a pattern forming on the chart that could break the support formed in December 2023 (2145-2150) In this case a false breakout could occur. Statistically, the strongest moves occur after a false breakout. A breakout and consolidation below 2145-2150 may initiate a strong decline to the liquidity areas indicated on the chart.
Resistance levels: 2156, SMA Support levels: 2144, 2125, 2100, 2075
I expect a retest of 2145-2150 with a bounce. If the price quickly returns to this support, the chances of a breakout will then increase. Fundamentally and technically, the gold market is showing weakness, so we should expect a negative scenario at the moment
There are rumors that the ffrs may resume its hawkish outlook tomorrow, which could strengthen the dollar. Gold may react in a bearish way in such a case
Hello the news is supposed to be negative for gold suddenly gold went up
ICmarkets
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Solid analysis! It's impressive how the falling channel is maintaining its integrity. A potential bounce off the upper boundary might lead to further downside movement in price. Excited to observe the market's reaction!
RLinda
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@ICmarkets, Thank you. Interesting to hear a comment from the brokers :)