After breaking below its long-term triangle support, gold seems to be going for a retest of the area of interest.
Will it hold as resistance this time?
Check out these nearby inflection points on the 4-hour time frame:
Gold (XAU/USD) 4-hour Forex Chart by TradingView
Dollar domination in the last weeks of July triggered a breakdown from gold’s symmetrical triangle support, before a sharp rally took place after Friday’s downside NFP surprise.
This was enough to take XAU/USD back for a retest of the broken triangle bottom right around the 50% Fib level.
Are gold sellers about to step back in soon?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and gold, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
The precious metal is still hanging out at the area of interest, which happens to be around the dynamic inflection points at the moving averages, still deciding whether or not to resume its slide.
A return in dollar strength could drag gold back down to nearby support zones at S1 ($3,199.53) and the swing low or for a continuation of the selloff down to S2 ($3,236.05).
On the other hand, sustained bullish momentum could take gold for a test of the 61.8% Fib at $3,371 or even a move back to R1 ($3,394.95) then the triangle top close to R2 ($3,427.01).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
