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The price of gold was trading in the green at 1,853 on the H1 at the time of writing. After its strong sell-off, the price tries to rebound and recover. Still, the bounce-back could be only a temporary one as the bearish pressure is huge as the DXY rebounded.
In the early morning, the Chinese data came in better than expected, while the Japanese and Australian figures came in mixed. Later today, the US CB Consumer Confidence is expected to drop from 107.3 to 103.9 points. In addition, the Chicago PMI could drop to 55.0 from 56.4 points, while the HPI may report a 2.0% growth. Also, don't forget that the Canadian GDP could bring some volatility as well.
XAU/USD failed to take out the 1,862 static resistance and now it has dropped below 1,853 immediate support. I've told you yesterday that breaking below this level could activate a potential drop towards 1,841 static downside obstacle.
The yellow metal found temporary support and now it has turned to the upside trying to test and retest the minor uptrend line and the 1,853 resistance (support turned into resistance) before resuming its sell-off.
The current rebound could bring new selling opportunities as long as the rate stays below 1,853. Testing and retesting this level, registering only false breakouts could help the sellers to go short with a potential target of 1,841.
Also, a new lower low, a bearish closure below 1,846 could activate more declines. Still, as you already know from my analyses, a valid breakdown below 1,841 could open the door for a larger drop.
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