While intraday price action is oversold, the is indicating further selling could continue to below $1,230. If a close below this key level occurs, traders can expect XAUUSD to reach $1,215.
Subscribers of MacroView's "Daily Grind" were alerted of the potential of a $30+ drop as seen here.
Key factors to watch:
- The four-hour chart z-score is -2.4 (daily z-score is -2.57). This suggests that prices are stretched and a score +/- 2 makes a great contrarian indicator.
MacroView expects to see demand between $1,215/20. It's important to keep and eye on the short end of the yield curve. With a relatively strong negative correlation with the two and five year yield maturity, if those continue to rise, we could see more pressure on the yellow metal.
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