Gold breaks support, negativity remains 7/9/2022

The prices of the yellow metal hit the strong resistance published in the previous analysis at 17260. we mentioned earlier that it is one of the most important keys to the trend; forcing to trade with clear negativity again. We noted that the decline below 1707 led the gold price to visit 1697 touching the mentioned target recorded its lowest level during the early trading of the current session at 1692.

Technically and carefully considering the 4-hour chart, we find a strong negative crossover from the simple moving averages, with trading stability below the psychological barrier 1700 support floor.

Therefore, we maintain our negative outlook, moving towards the 2nd target at 1680, taking into consideration that the target price area 1680 is critical if it is broken, this leads gold prices to enter a strong descending wave with an initial target at 1650.

Consolidation above 1700, and most importantly 1705, postpones the chances of a decline, and we may witness a bullish bias that targets retesting 1715 and 1726, Fibonacci correction of 23.60%, respectively.

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.

S1: 1681.00	R1: 1715.00
S2: 1670.00	R2: 1737.00
S3: 1647.00	R3:  1749.00