Gold's Struggle at ATH: Potential Reversal Ahead ?
Hey Traders,
GOLD is currently encountering a potential resistance near it's all time high of 2,578, showing signs of potential bearish pressure. This level coincides with a significant supply zone, and early signs of rejection suggest a possible downside move to retest the most recent range resistance turned support/demand zone around 2 530.
Current Market Conditions:
Resistance Zone: Price has started to slow down at 2,578, where bulls are struggling to push higher.
Bearish Reversal Candlestick: The formation of a bearish reversal pattern hints at a potential decline from this resistance level.
Sell-off Potential: A break below 2,575 could confirm the correction and 2,558 could accelerate the sell-off, with support levels in focus.
Fundamental Analysis/Outlook:
Recent US economic data and Federal Reserve policy outlooks have added pressure to the dollar and with the interest rate decision coming this Wednesday, we could see more demand for gold, so hopefully this correction come before then.
Targets:
TP1: 2,558
TP2: 2,540
TP3: 2,529
Risk Management:
Stop-Loss: Set your stop-loss at 2,586 to protect against any unexpected upside momentum beyond the resistance level.
Conclusion:
XAUUSD seems ready for a pullback as it faces resistance at the 2,578 level. A bearish move could unfold if the resistance holds, so watch price action closely for a potential short opportunity.
I would love to hear your thoughts in the comment section, and please hit boost and follow for more ideas. Thank you, and profitable trading to you all!
Trading Insight: "When the market reaches a peak, it's often the point where the wise choose to step back."
GOLD is currently encountering a potential resistance near it's all time high of 2,578, showing signs of potential bearish pressure. This level coincides with a significant supply zone, and early signs of rejection suggest a possible downside move to retest the most recent range resistance turned support/demand zone around 2 530.Current Market Conditions:
Resistance Zone: Price has started to slow down at 2,578, where bulls are struggling to push higher.
Bearish Reversal Candlestick: The formation of a bearish reversal pattern hints at a potential decline from this resistance level.
Sell-off Potential: A break below 2,575 could confirm the correction and 2,558 could accelerate the sell-off, with support levels in focus.
Fundamental Analysis/Outlook:
Recent US economic data and Federal Reserve policy outlooks have added pressure to the dollar and with the interest rate decision coming this Wednesday, we could see more demand for gold, so hopefully this correction come before then.
Targets:
TP1: 2,558
TP2: 2,540
TP3: 2,529
Risk Management:
Stop-Loss: Set your stop-loss at 2,586 to protect against any unexpected upside momentum beyond the resistance level.
Conclusion:
XAUUSD seems ready for a pullback as it faces resistance at the 2,578 level. A bearish move could unfold if the resistance holds, so watch price action closely for a potential short opportunity.
I would love to hear your thoughts in the comment section, and please hit boost and follow for more ideas. Thank you, and profitable trading to you all!
Trading Insight: "When the market reaches a peak, it's often the point where the wise choose to step back."
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