Gold drops aggressively in the short term and is set to pressure the symmetrical triangle's support. The failure to make an upside breakout could bring a downside breakout and a strong leg down.
The risk-off rally could push the price of gold down in the upcoming period. The rate is located at $1,931 level after several failures to come back towards the $2,000 psychological level.
The price is almost to reach the triangle's support level, a valid breakdown should suggest selling with a potential target at the $1,900 level. Is pressuring the S1 ($1,930) level after the failure to stabilize above the Pivot Point (1,952).
Personally, I still believe that only a valid breakdown below $1,900 level could really validate a corrective phase. Technically, gold was somehow expected to resume its upwards movement after escaping from the former down channel, but the failure to make new highs, to register a valid breakout invalidates this scenario, for now.
- XAU/USD Trading Tips & Conclusion
Buy from above the R1 ($1,972) level, an upside breakout, the upside target remain at $2,075 all-time high.
Sell a bearish closure below $1,900 level with a potential downside target at $1,800 level.
