Gold is undoubtedly sinking
There are many reasons to short XAUUSD by technically analysis
4H chart shows double tops near 1340, H&S breakout DN, New phase of downward cycle.
There are two targets:
1) Horizontal support at 1314
2) Pink dotted line (base of channel) = same slope of H&S neck line
On the other hand,
Ichimoku analysis has not concluded a bearish pattern yet, but instead the market looks more sideway.
We can see a very strong support zone found between 1301.12 (base of green cloud), and 1308.91 (top of red cloud).
In conclusion, Gold will hit Target 1 first where the intersection of Fib Ext 78.6% and horizontal support and purple dotted line.
If there were more bearish, then it will drop into the strong support zone, target 2 will be applied.
4H chart shows double tops near 1340, H&S breakout DN, New phase of downward cycle.
There are two targets:
1) Horizontal support at 1314
2) Pink dotted line (base of channel) = same slope of H&S neck line
On the other hand,
Ichimoku analysis has not concluded a bearish pattern yet, but instead the market looks more sideway.
We can see a very strong support zone found between 1301.12 (base of green cloud), and 1308.91 (top of red cloud).
In conclusion, Gold will hit Target 1 first where the intersection of Fib Ext 78.6% and horizontal support and purple dotted line.
If there were more bearish, then it will drop into the strong support zone, target 2 will be applied.
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