GOLD → Market on pause, correction continues

OANDA:XAUUSD   Gold Spot / U.S. Dollar
XAUUSD in correction phase, pullback from support at 200 pips on Thursday begin to sell off on the back of positive US GDP. The DXY strengthens and returns to consolidation, which affects the forex market and gold.

Powell spoke yesterday, but his words were predictable, to summarize: we are not sure yet, so if anything, we may add more. On his words, the dollar returns for the previously broken support and we are greeted by a bullish US GDP in the morning by the market.
Looking at gold technically, the pullback phase of the price has not yet reached its target. These zones could be: 1945.8 (deeper test), 1932.9 (0.382 fibo), MA200, and one important zone is the 1908.5 level (0.5 fibo).

Since the market can't go up all the time, even on increased interest, we encounter correlations or changes in the local trend. The short-term target now is the support at 1945.8 (the price may reach this zone during the Friday session). Appropriate reactions to this level will give us prerequisites for a pullback or a continuation of the fall, we will keep an eye on the price.

Support levels: 1945.8, 1932.9, MA200.
Resistance levels: 1953, 1962

I assume that the price will continue to form a current flat until the market gets the appropriate fundamental data or other leverage to get out of this range. Since the market is neutral now, we can trade according to the range trading strategy.

Regards R. Linda!



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