Gold price dropped shockingly on the first day of the week!
Hello everyone. Gold prices extend pullback as Middle East worries ease US dollar weakens amid upbeat mood, despite recovery in US Treasury yields. Gold prices target $2,350 on sustained break below $2,370 on 4-hour chart.
On H1, the $2350 support level is formed and it seems that the market maker is trying to rally the price back up, testing the breakout resistance or $2370 before falling further. And if the price quickly returns to support from resistance, Fibonacci also indicates strong selling pressure from this level, then the possibility of a breakout increases. According to statistics, the strongest fluctuations are after the breakthrough. I expect a correction after the false breakout. Consolidation below this level confirms that the market is ready for a correction.
Overall, XAUUSD market fundamentals and technicalities are showing weakness so we can expect a bearish scenario at the moment.
On H1, the $2350 support level is formed and it seems that the market maker is trying to rally the price back up, testing the breakout resistance or $2370 before falling further. And if the price quickly returns to support from resistance, Fibonacci also indicates strong selling pressure from this level, then the possibility of a breakout increases. According to statistics, the strongest fluctuations are after the breakthrough. I expect a correction after the false breakout. Consolidation below this level confirms that the market is ready for a correction.
Overall, XAUUSD market fundamentals and technicalities are showing weakness so we can expect a bearish scenario at the moment.
Trade active
Trade active
