Lingrid | GOLD Weekly Price ACTION AnalysisAs I discussed in my previous weekly outlook on OANDA:XAUUSD , the market took a significant hit after the NFP release in the NY session. The stronger-than-expected jobs report has sparked speculation that the Federal Reserve may not cut interest rates as soon as expected, leading to a pullback in many markets - including Bitcoin. Initially, the gold market ralled, but it struggled to break through the psychological level of 2,400 and subsequently fell below 2,300. On the weekly timeframe, the price action formed a bearish long tail, indicating potential bearish momentum. This pattern is reminiscent of a similar price action we saw last year, where the market declined for several months.
On the daily timeframe, the market appears to have formed a head and shoulders pattern. The neckline of this pattern has recently been broken, coinciding with the 2,300 level. Furthermore, this breakout also occurred on the 4H timeframe, where it marks a breakout of the upward channel. This convergence suggests that the market may be poised for further momentum in the direction of the breakout. If it breaks below 2,280, which is previous month's low; we could see a deeper correction. However, as long as we stay above 2,300, the market is in a consolidation phase between 2,300 and 2,400. A pullback could be acceptable, with a potential target of 2,200. Pay attention to interest rates, which could impact gold prices.
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