GOLD → A retest of resistance could turn into a breakout

11 juil. 2023

XAUUSD is strengthening within a bullish counter-trend correction. The price is testing a strong resistance area, but at the same time there are signals that may allow the price to break the resistance.



On the daily timeframe we observe interesting things: the correctional wave reaches the level of 0.618 fibo of the third wave and also tests the area of 0.382 fibo of the global movement. Most likely, a rather strong rebound may follow from this area. Earlier we observed a breakout of the global trend support. At the moment the price is forming counter-trend correction to the level of 1939, which plays a key role. If this resistance is broken, the price may strengthen to the previously broken line or to the area of 0.382 Fibo (1967). The situation on the market may change dramatically when the resistance of the upward correction is broken. We are watching the price reaction to the mentioned area.

Resistance levels: 0.5 fibo, 1938, channel resistance
Support levels: 1924, 1920, 1912
I expect the price to test the breakout of the channel resistance. At the moment bears are still strong and they can push the price down, but with the breakout and consolidation of the price above the level there will be a chance to see a strong impulse to 1959.

Regards R. Linda!