FxNews – In today’s gold technical analysis, we observe that the XAUUSD pair has reached its October high and tested this resistance mark on November 23. The pair is currently trading within a bullish flag pattern. However, in today’s session, a bearish long-wick candlestick pattern has emerged. Concurrently, the Awesome Oscillator indicates a divergence on the XAUUSD 4-hour chart.
If the bears manage to keep gold’s price below the $2,006 mark, it seems plausible that the gold price might enter a correction phase towards the 23.6% Fibonacci retracement level.
There are three compelling reasons supporting this bearish scenario:
- The $2,006 level has been a strong resistance, holding firm for over a month.
- The emergence of a bearish long-wick candlestick pattern.
- Divergence signaled by the Awesome Oscillator.
However, this bearish outlook would be invalidated if the gold price crosses above the $2,006 resistance level.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.