Gold forecast - long term Weekly - XAU/USD (Gold vs. US Dollar)
As shown, note the following:-
1. Price Action and Candlestick Patterns:
• The price has been in a strong upward trend but is showing signs of a pullback near a key resistance level.
• Consecutive red candles indicate a potential start of a price correction.
• The price is approaching a key resistance at 2989.813, with initial support at 2790.100 and stronger support at 2583.900.
2. Harmonic Pattern (Butterfly):
• A reversal harmonic pattern is visible on the chart, signaling a potential downward correction after a strong bullish move.
• The completion of this pattern increases the likelihood of a pullback toward the support levels mentioned.
3. Volume Indicator:
• There’s a noticeable decrease in trading volume despite the continued upward movement, reflecting weakening bullish momentum.
• A negative divergence between price and volume suggests a potential upcoming correction.
4. Relative Strength Index (RSI):
• The RSI reached overbought levels (above 70) and has started to decline, indicating possible profit-taking and a correction phase.
• A negative divergence between the price and the RSI supports the probability of a downward move.
As Future Outlook:
🔴 Bearish Scenario (Most Likely):
• A break below 2790.100 could open the way for a drop toward 2726.300 and then to 2583.900.
• Monitoring volume and RSI behavior is crucial to confirm continued downside movement.
🟢 Bullish Scenario (In Case of Breakout):
• A bullish Harami candle is clearly shown as breakout and weekly close above 2989.813 could push the price higher toward the 3100.000 level.
