XAUUSD: In need of a medium-term correction.

Gold (XAUUSD) has been trading within a Channel Up since early April. The 1D chart remains bullish (RSI = 60.683, MACD = 14.370, ADX = 34.990) but the upper MA periods have started to turn bearish (MA5). The technical reason is that it hit the Higher High trend-line of the Channel Up. We expect to make a first Low near the previous Support at 1,750, rebound to the 0.618 Fibonacci retracement level and then resume the decline towards the inner Higher Low trend-line. Our Target Zone is 1,725 - 1,715.

Notice that the same pattern has been formed on every Higher High formation. The price drops by roughly -2.40% then bounces back above the 0.618 Fibonacci and then dips more to the Inner Higher Low trend-line.


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