Lingrid | GOLD Market Weekly OUTLOOK

This week the price of XAUUSD made ATH and went down, as I predicted in my last weekly forecast. Clearly, gold prices are under downward pressure. The strength of the DXY often moves in the opposite direction to gold, making it less attractive when the dollar is strong. The recent false breakout of the resistance zone in gold price action, as well as the bearish RSI divergence, point to potential weakness in the future. However, it is important to keep an eye on market movements, as things can change quickly. 

On the weekly timeframe, we have a huge long-tailed bar that shows that the price took liquidity above previous resistance and fell below it. An important thing to keep in mind is the previous week's low. If the price breaks below this level, we might have a bearish move towards the strong support at 2100. Another scenario can be a retest of the 50% retracement level of the weekly candle and then move downwards. On the daily timeframe, basically, we have pretty much the same picture: a long-tailed bar and price/time symmetry double top, except for the long tail with divergence, as I mentioned above. This implies there is a possibility of gold prices falling towards the 2100 level, which was previously considered a strong resistance.

Overall, I expect a pullback because the market seems overextended. Alternatively, the market may just move sideways. It is important to remain cautious and adaptive in the face of market volatility in the next week, as we all know trends do not always follow a linear path. 

Traders, if you like this idea or have your own opinion on this matter, write in the comments. I will be glad 👩‍💻

Comment:

This week, we should keep an eye on the previous weekly low at 2146.155.  If the XAUUSD breaks this key level, there's a high likelihood of it trending downward. However, it could also be a false breakout, although the chances are relatively lower. On the 1H timeframe, a potential fake breakout occurred at 2180, followed by a significant rejection candle. I expect the market to move sideways to form an accumulation phase above the support level, followed by a potential breakthrough. My target for this scenario is the support around 2125.000.

Comment:

The market keeps moving sideways after falling from the resistance zone. XAUUSD formed an inside formation on the daily timeframe. At the resistance level, the price was rejected several times before. I think the market will first move up to test the previous day's high, then move down if it makes a fake breakout. Basically, I expect the price to retest a fake breakout of the range zone and bearish movement, depending on the strength of the price action. My target is a support level at 2146.