XAUUSD - Gold is still in a downtrend, selling strategy

As gold retraces, attention turns to support zones around 1,953 to 1,947 and key moving averages, while investors watch for signs of recovery.

Gold confirmed a breakdown from its small rising trend channel today as it fell through the lower trendline of the pattern and yesterday’s low of 1,977. Weakness was further confirmed on a drop below last Wednesday’s minor swing low of 1,970. Support for the day was seen at 1,957, leading to a bounce to test resistance around the 1,970 level. Given the characteristics of the breakdown it seems likely that a deeper retracement is in the works before gold is ready to resume its ascent.

For the upside, given today’s price action it is looking like gold might continue to retrace or consolidate for the remainder of this week. We are already heading into mid-week and the retracement only got confirmed today with the rising channel breakdown. As it stands now, an advance above today’s high is short-term bullish with strength confirmed on a daily close above the high. And then further still above the two-day high of 1,993.

Comment:

XAUUSD Sell 1972- 1974

✔️TP1 : 1965
✔️TP2 : 1961

❌SL: 1980