GOLD → Support Retest. What to expect from the market?

6 nov. 2023

XAUUSD has been heading towards the support area since the opening of the session. Most likely the market is trying to collect the maximum possible volume of liquidity before further upward breakout. What should we expect from the market next?

On Sunday we discussed more globally the medium-term scenario for gold, I suggest you to familiarize yourself with it, if you haven't done it yet.

The most important thing is that at the moment we have possible preconditions for the formation of a further scenario. The market took last week's speech of the Fed Chairman positively. Ogrim progress on the inflation issue. After a long accumulation of DXY and price standing still, the active growth is stopped and the price is falling, which may have a positive impact on the gold market.

Technically, the metal is in a consolidation format and is testing the support area against the bullish trend. There is a high probability that the market may make a false breakdown of support before further growth. A price consolidation above the SMA will form a strong bullish potential.



Support levels: 1978.7, 1984, channel boundary
Resistance levels: MA200, MA50

I assume that after retesting the support area gold will start its growth. Targets are indicated on the chart.

Regards R. Linda!

6 nov. 2023

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