Mihai_Iacob

Is Gold preparing for a deeper correction?

Short
OANDA:XAUUSD   Gold Spot / U.S. Dollar
In my yesterday's analysis, I said that even though the longer-term trend is still bullish, the evening star candle formation from Monday could be an indication that bulls are tired and we can assist to a range trading day.
Indeed, XauUsd has spent the day between the very well-defined boundaries of this range...
Looking closer at an H1 chart we can see that the yellow metal is still contained in this range, however, bulls seem tired and a deeper correction could follow.
Technically speaking, 1760-1765 is a very important level, defined by 2 rising trend lines and the horizontal level and a break here could lead to an acceleration to the downside.
My preferred scenario is to sell rallies in anticipation of a such break with Gold back above 1800 negating this outlook.

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