Wed, Oct 05, 2022 @ 16:27 GMT
HomeContributorsTechnical AnalysisGold Correction In Play

Gold Correction In Play

The yellow metal dropped after the morning gap and reached new lows. The rate is almost to reach a first downside target, where he may find temporary support again. Is located at $1275 per ounce as has squeezed a little in the last hours. Gold dropped as the USDX has forced to climb much higher on the short term. The dollar index stands much above the 93.81 static resistance, but we’ll see in the upcoming days if this will be a valid breakout.

Technically, the USDX is somehow expected to climb much higher on the short term after the failure to reach and retest the 92.49 static support. The Gold drops as the dollar received a helping hand from the United States data. Personally, I believe that the USDX still needs a boost from the fundamental factors to be able to stabilize above the 93.81 level because technically is located below several resistance levels again.

Gold dropped further after the breakdown below the 50% retracement level and now is almost to hit the sliding parallel line (SL) of the major ascending pitchfork. Technically, it should breakdown through the sliding line (SL) after the retest of the WL1. Is on a declining path, could move downwards between the WL1 and the 150% Fibonacci line. A valid breakdown below the SL will signal a larger drop in the upcoming weeks.

MultiBank Exchange Group
MultiBank Exchange Grouphttp://www.mexgroup.com
Multibank Exchange Group (MEX Group) is a multinational financial derivatives dealer. Established in California in 2005, MEX has offices in several countries around the world, including the US, the UK, Australia and China. Mex Group is regulated by the Australian Securities and Investment Commission (ASIC) in Australia, the Ras al Khaimah Free Trade Zone (RAK) in the United Arab Emirates and the Financial Services Commission (FSC) in the British Virgin Islands.

Featured Analysis

Learn Forex Trading