GOLD → High readiness for correction

XAUUSD is consolidating above 2175, but at the same time a descending triangle is forming. Theoretically, price should break support, which will form a false break of 2175.

On D1, volumes are declining, price is stopping after a strong rally.
On H1, support 2175-2175 is formed and price has been squeezing towards support for a few hours, which increases the chances of a support breakout. But! If buyers do hold this area, the price may test the local high or 2200 before further declines. The dollar index is forming a correction from support, which is giving a corresponding reaction in the gold market as well.
A descending triangle is forming on H1. A break of the support at 2175 will give an impulse to the lower levels.

Resistance levels: 2185, 2195, 2200
Support levels: 2175, 2161, 2144

I expect correction after the false breakdown of 2175. Consolidation of the price below the level will give confirmation that the market is ready to correct

GOLD GC1! MGC1! DXY

Regards R. Linda!

Comment:

Today the CPI, a fairly important index for the medium term, is published.

The CPI measures price changes from the consumer's perspective. It is one of the main ways to measure changes in consumer buying trends and inflation.

Analysts expect a 0.1% decline in Core CPI, as well as a 0.1% increase in CPI. Overall, this is a relatively neutral indicator.
Inflation in the US is still high and it would be logical to see a neutral-to-non-negative index. But as the regulators are actively fighting this situation, there is a chance to see bullish data, which could strengthen the dollar index.

Higher than expected data will be positive for the dollar
Lower than expected data will be negative for the dollar

Trade active:

Support is broken
The primary movement gives us a result of 140 pips :)

Trade closed: target reached:

Interim goal achieved :)
The market gives us almost 240 pips

Trade active:

Resistance Retest.
May be a false breakdown before further fall