Gold Technical Analysis: What is Next?
FxNews Gold technical analysis – XAUUSD had a massive jump in Monday’s market opening hour. The XAUUSD price surged as high as $2,150, reaching a new record high. However, the market quickly became oversold and the yellow metal’s price retreated with a faster pace.
The XAUUSD is currently nearing the 38.2% Fibonacci support level after it bluntly ignored the 23.6% level of the Fibonacci retracement. This indicates a strong bearish momentum in the short term.
To have a better understanding of the current price action, let’s zoom in to the gold’s 4-hour chart.
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 movement in gold and the main bullish trend, it is likely for the price to 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 signal a reversal of the bullish trend and open the way for further declines.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.