For Traders

Analytical Reviews

Hot forecast

25.11.202214:51 Forex Analysis & Reviews: Gold: downside movement below 1,749

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The price of gold dropped after its strong growth and now it stands right above the 1,749 key support. It's trading at 1,751 at the time of writing and it seems undecided after making a new low of 1,749 today.

The yellow metal dropped as the Dollar Index managed to rebound boosting the greenback. As you already know, fundamentally, XAU/USD printed a strong swing higher after the US manufacturing sector dropped into contraction as well. Also, the FED could deliver only a 50 bps rate hike in December after the US reported lower inflation.

XAU/USD Strong Sellers!

Technically, XAU/USD rallied after escaping from the down-channel pattern. It has climbed as much as 1,761 where it has found resistance. It has failed to confirm its breakout above 1,758 and now it challenges the 1,749 key downside obstacle.

It's trapped between 1,758 and 1,749 levels. After its false breakout, the rate signaled strong downside pressure.

XAU/USD Forecast!

A valid breakdown below 1,749, a new lower low activates more declines. This scenario brings new short opportunities. The weekly S1 (1,736) stands as a downside obstacle and target.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.