Gold: flag pattern invalidated, more declines in cards
August 2, 2023 4:22 pm
XAU/USD crashed in the last hours and now is located at 1,934 at the time of writing. The downside pressure is high as the USD rallied. Dollar Index’s further growth forced the yellow metal to extend its sell-off. In the short term, the bias is bearish despite temporary rebounds.
Fundamentally, Gold took a serious hit from the US data today. The ADP Non-Farm Employment Change was reported higher at 324K compared to the 191K estimated. Tomorrow, Switzerland’s CPI, the BOE’s policy meeting, and the US data could be decisive.
XAU/USD Trading In The Red!
Technically, the rate failed to stay above the channel’s downside line and above the 1,945 signaling strong downside pressure. Now, it has registered a new lower low activating more declines.
Still, after its massive drop, the rate could try to come back to test and retest the broken levels before extending its sell-off.
XAU/USD Forecast!
The aggressive breakdown below the weekly S1 (1,940) announced a further drop. The bearish closure below this static support was seen as a bearish signal. The weekly S2 (1,921) could represent a potential downside target.
The material has been provided by InstaForex Company – www.instaforex.com
XAU/USD crashed in the last hours and now is located at 1,934 at the time of writing. The downside pressure is high as the USD rallied. Dollar Index’s further growth forced the yellow metal to extend its sell-off. In the short term, the bias is bearish despite temporary rebounds.
Fundamentally, Gold took a serious hit from the US data today. The ADP Non-Farm Employment Change was reported higher at 324K compared to the 191K estimated. Tomorrow, Switzerland’s CPI, the BOE’s policy meeting, and the US data could be decisive.
XAU/USD Trading In The Red!
Technically, the rate failed to stay above the channel’s downside line and above the 1,945 signaling strong downside pressure. Now, it has registered a new lower low activating more declines.
Still, after its massive drop, the rate could try to come back to test and retest the broken levels before extending its sell-off.
XAU/USD Forecast!
The aggressive breakdown below the weekly S1 (1,940) announced a further drop. The bearish closure below this static support was seen as a bearish signal. The weekly S2 (1,921) could represent a potential downside target.
The material has been provided by InstaForex Company – www.instaforex.com
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