A comparative examination of the strength of the US-Dollar often gives tangible insight into the direction of Gold (XAUUSD). The chart above indicates the expectation of a bullish price reaction from the demand zone. Increased strength for the Dollar simply implies possible bearish reactions for Gold. With this in mind, let’s take a look at the Gold (XauUsd) chart.
XAUUSD – DAILY
The daily timeframe presents an interesting scenario with the joint confluence of the Pivot zone and the drop-base-drop supply zone – not to forget the 200-Day Moving Average too. These factors line up perfectly in favour of a bearish reversal from the marked zone. Let’s take a deeper dive into the lower timeframe price action though.
The 4-Hour timeframe shows price wedged between two trendlines but a lower timeframe view makes an even clearer impression.
Here on the H1, price seems to be creating an AMD (Accumulation-Manipulation-Distribution) pattern over here which also serves as a bearish confirmation. Profit targets are; 1785, 1765, and 1755.
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