Bearish traders want to see selling pressure build under $4041.65 after the market formed a new lower top at $4166.13 earlier in the week.
To simplify the current situation, in order to shift momentum to the upside, XAUUSD has to break the long-term pattern of lower tops.
The downtrend is intact with lower tops and the 50-day average well overhead.
Bears need selling pressure under the lower end of the pivot to reaffirm the pattern of lower tops that has been controlling this market since January.
The pattern of lower tops has to break before this market can shift direction.
Bearish traders want to see selling pressure build under $4041.65 after the market formed a new lower top at $4166.13 earlier in the week. The retracement zone that stopped the rally was $4162.36 to $4214.34. This zone also stopped the rally at $4202.71 on July 6.
To simplify the current situation, in order to shift momentum to the upside, XAUUSD has to break the long-term pattern of lower tops.
What to Watch
Gold enters next week balanced between the relief from lower crude and the risk that the inflation trade comes back on the next war headline.
The downtrend is intact with lower tops and the 50-day average well overhead. The market is straddling the pivot zone that has been defining the short-term direction. Bullish traders need another higher bottom to confirm the base is building. Bears need selling pressure under the lower end of the pivot to reaffirm the pattern of lower tops that has been controlling this market since January. The pattern of lower tops has to break before this market can shift direction.
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