empty
 
 
06.12.2022 06:57 PM
Gold's flag pattern needs confirmation

The price of gold is trading in the green at 1,776 on the H1 chart at the time of writing. It tries to rebound and recover after today's rally. It has climbed as much as 1,780 today where it has found resistance. The price action enabled a flag formation, but a downside movement is far from being confirmed.

Fundamentally, XAU/USD crashed yesterday after the US ISM Services PMI came in at 56.5 points versus the 53.5 expected. Today, the Reserve Bank of Australia increased the Cash Rate from 2.85% to 3.10% as expected. Tomorrow, the Australian GDP and the BOC represent high-impact events.

XAU/USD Bearish Pressure Remains High!

This image is no longer relevant

Technically, the rate failed to stay above the 1,786 key level signaling exhausted buyers. After its last sell-off, the rate rebounded, developing a potential flag. Today, it has found resistance at the weekly pivot point of 1,780 and it has failed to stabilize above the broken upside line.

The flag's downside line and 1,765 represent downside obstacles. Only a new higher high, jumping and stabilizing above the pivot point (1,780) may signal an upside continuation.

XAU/USD Outlook!

A new lower low, dropping and closing below 1,765 suggest a selling opportunity. This activates more declines.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2023
EURUSD
Euro vs US Dollar
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Start trade
Start trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Analysis and trading tips for GBP/USD on March 28

Analysis of transactions and tips for trading GBP/USD The pair tested 1.2229 at a time when the MACD line was already far from zero, limiting the downside potential

Jakub Novak 09:09 2023-03-28 UTC+2

Analysis and trading tips for EUR/USD on March 28

Analysis of transactions and tips for trading EUR/USD The pair tested 1.0758 at a time when the MACD line was already far from zero, limiting the downside potential

Jakub Novak 09:09 2023-03-28 UTC+2

EUR/USD and GBP/USD: simple tips for beginners on March 27 (North American trade)

The euro instantly perked up following the upbeat Ifo survey on business sentiment, the assessment of current economic conditions, and economic expectations for Germany. Still, it was not enough

Jakub Novak 13:53 2023-03-27 UTC+2

Analysis and trading tips for GBP/USD on March 27

Analysis of transactions and tips for trading GBP/USD The pair tested 1.2274 at a time when the MACD line was already far from zero, limiting the downside potential

Jakub Novak 09:37 2023-03-27 UTC+2

Analysis and trading tips for EUR/USD on March 27

The pair tested 1.0827 at a time when the MACD line was just starting to move below zero, which was a good reason to sell. Accordingly, this resulted

Jakub Novak 09:34 2023-03-27 UTC+2

Analysis and trading tips for EUR/USD and GBP/USD on March 24 (US session)

Euro and pound fell as risk appetite dwindled due to weak economic activity in both the eurozone and the UK. But activity data from the US, which

Jakub Novak 16:00 2023-03-24 UTC+2

Analysis and trading tips for GBP/USD on March 24

Analysis of transactions and tips for trading GBP/USD The pair tested 1.2335 at a time when the MACD line was already far from zero, limiting the upside potential

Jakub Novak 08:05 2023-03-24 UTC+2

Analysis and trading tips for EUR/USD on March 24

Analysis of transactions and tips for trading EUR/USD The pair tested 1.0893 at a time when the MACD line was far from zero, limiting the downside potential of the pair

Jakub Novak 08:03 2023-03-24 UTC+2

USD/CAD: new downtrend, 1.3658 as downside obstacle

The USD/CAD pair is trading at 1.3673 at the time of writing and it stands above the 1.3658 former low which represents a downside obstacle

Ralph Shedler 14:30 2023-03-23 UTC+2

Analysis and trading tips for EUR/USD and GBP/USD on March 23 (US session)

Growth in euro is slowing as buying activity started to weaken after the pair updated the March high. In addition, yesterday's momentum could very quickly turn into a smooth decline

Jakub Novak 11:20 2023-03-23 UTC+2
Can't speak right now?
Ask your question in the chat.