Gold is trading at $1,941 and it seems strongly bearish, determined to drop deeper after its failure to stabilize above the uptrend line. As you already know from my previous analyses, the outlook was bullish as long as the price was trading above the major uptrend line.
Now, the uptrend was violated again in the short term signaling a strong selling pressure, strong sellers. It could drop at least towards the former low at $1,906. The $1,900 psychological level is seen as critical support. A breakout of this levels suggests selling as the yellow metal could develop a larger decline and a corrective phase.
The price of gold drops as the USD appreciates versus the other major currencies in the short term. So, a USD further growth could push the gold price lower.
- XAU/USD Trading Tips
We may have a short-term selling opportunity if the price reaches $1,930. You can place, hide, your Stop Loss Order above the $1,970 level, and set your first downside target at $1,917.
A great selling opportunity could be suggested by a drop and stabilization below $1,900 psychological level. This scenario could signal a drop towards $1,800 level.
Now, we don't have a buying opportunity. Only a jump above $1,975 and above $2,000 could rally validate a further growth towards $2,075 historical high.
