Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Gold prices experienced significant losses in the previous trading session, reflecting the anticipated upward trend. However, the rise of the US dollar following inflation data spurred a downward trend, with gold bearing the brunt.
From a technical standpoint, previous reports this month highlighted the importance of maintaining trading above the pivotal support level for 2016. However, gold breached this level, initiating a bearish correction wave with initial targets set at 1995, reaching a low of 1988. The 4-hour chart indicates a clear break of the 2016 support level, now acting as resistance, with simple moving averages forming a negative crossover, supporting the continuation of the downward trend.
Thus, the likelihood of further decline remains high, with the next official target set at 1977, the 50.0% correction level, before determining subsequent price destinations.
It’s important to note that a return to stability above 2016 could disrupt the downward correction and prompt gold to resume recovery attempts, potentially retesting 2035.
Warning:
The Stochastic indicator suggests oversold conditions, adding a note of caution amidst the downward trend. Traders should remain vigilant and adapt their strategies accordingly.
Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart
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