Short

GOLD → Retest of downtrend resistance. Low volatility on Monday

Updated

is redeeming part of the fall that occurred on Tuesday. The price is testing trend resistance amid the correction, but the negative fundamental background is still in place.

There is no news today, as the USA is celebrating the President's Day.
Technically, buying back positions is not an uncommon maneuver from a market maker who has the task to get back some liquidity from speculators who had time to open trades in the right direction. Also, the area of 2029 is an attractive zone and we have a high enough chance to retest this resistance.
But, after breaking through the channel resistance, there is no upward impulse, which would indicate a change of trend. XAU is currently in a narrow consolidation and may soon test the 2016 support and the previously broken channel boundary. If a false break of trend resistance is formed, a sell-off phase towards 2000-1998 will begin.

Resistance levels: 2020.9, 2023, 2029.4
Support levels: 2016, 2015, 2011

The price is in the 2020.9 - 2016 consolidation. A break of one of the boundaries will give temporary potential. If resistance is overcome, price will head towards 2029.4 before falling further. But, a breakout of 2016-2015 will form a phase of decline to the mentioned targets on the chart

Regards R. Linda!

Note

False breakout and a reaction is formed in the form of a +50 pips decline.
Tomorrow a retest of the level is possible, and further direction will depend on the market reaction and DXY price behavior

RLinda

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