Six days ago we analyzed the Gold (XAUUSD) price action. In that post we asked a very important question. the question we asked was whether the Gold price could possible continue its bullish rally this month. Well, up until this day you may notice that price trades in the opposite direction. Sellers have manage to push the market drastically down as the market plummets to lower levels. In case you missed the previous post we’ve provided a link below (https://fxsits.com/gold-price-rally-bullishly-for-2-months-straight-could-this-be-the-3rd/)
In last week’s post price traded at level 1892.79. Prior to that we had seen the Gold (XAUUSD) price create new 2021 higher highs. Price peaked at a level 1909.07 where it found found resistance before plummeting bearish . Today price trades at 1776.22 just below our previous support level at 1800.06. In the chart it is clear that price has broken past this level and shows potential of reaching level 1750.00 . We believe that this is our major support level. Price may struggle breaking past this level.
If price does find support at level 1750.00 this could possibly be the best time to buy the gold. The next target level may be the 2021 higher which was set a few days ago. Level 1800 was set to be our previous support until price had broken past it today.
Well, depending on how the monthly candle closes. We think possibilities are that we could see the market sell next month. If price moves past the major support at 1750.00 then 1724.84 will be exposed. Currently the monthly candle seems to be engulfing the bullish bar thus erasing all possibilities for bullish price action.
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