FxNews–XAUUSD‘s price surged massively in Monday’s market opening hour, reaching a new record high of $2,150. However, the market quickly oversold, and the yellow metal’s price retreated faster.
Gold Technical Analysis – What is Next?
The XAUUSD is nearing the 38.2% Fibonacci support level after bluntly ignoring the 23.6% Fibonacci retracement level. This indicates strong bearish momentum in the short term. Let’s zoom in on gold’s 4-hour chart to understand the current price action better.
The price is nearing the lower line of the bullish flag pattern in the 4-hour chart, which aligns with the Ichimoku cloud. This conjunction lends credibility to how powerful this support area can be.
Due to the uptick in gold and the main bullish trend, the price will likely bounce from this support zone and test the $2,067 resistance level. However, if the price breaks below the flag pattern and the cloud, it could reverse the bullish trend and open the way for further declines.