GOLD → A retest of support will lead to a breakout

XAUUSD under the influence of negative fundamental background is testing the support, from which it is forming the rebound we were waiting for. At this time the dollar is strongly strengthening and overcoming local boundaries.

On D1 the price of gold is testing the ascending support, a small rebound and a possible retest of the support may be a signal that the market is ready for further decline. There is no strong news today, several FOMC representatives will speak, but the outlook for inflation and rates is the same. On the XAU graphee, we should pay attention to the support at 2021 and 2016. A retest, price squeeze and pre-breakdown consolidations would indicate that the market is ready for a breakout of this zone for a further decline towards 2004. However, price may still test resistance at 2031, 2039 before further decline. Moving averages are trying to form another line crossover.

Resistance levels: 2028, 2031, 2039
Support levels: 2021, 2016, 2004

At the moment, the dollar is ready to grow further, except that a small correction may follow. But fundamentally, the outlook is the same. Gold in this case may break the nearest support and head towards 2000

GOLD GC1! MGC1! DXY

Regards R. Linda!

Comment:

The correction in the dollar index is shaping gold's correction.
The price is testing the resistance area of the local range