USD's appreciation sends the price of gold lower at $1,896 level. The rate has registered only a false breakdown below the $1,900 level, but I'm afraid that this downside obstacle will fail to hold as the bearish pressure is high.
Gold has escaped from a symmetrical triangle and now it tries to violate the extended range's support. A valid breakdown below $1,900 is imminent as the rate has stayed near this critical support.
I've told you in yesterday's article that a downside breakout from the symmetrical triangle is imminent after the false upside breakouts. Still, only a valid breakdown below the $1.900 and a new lower low, drop below $1,882 validated the corrective phase.
As I've just said, Gold has registered a false breakdown below the $1,900 level, another false breakdown with great separation or a strong bullish engulfing could invalidate the bearish scenario and it could send the rate higher again.
- XAU/USD Trading Tips & Conclusion
Sell a drop below the $1,882 yesterday's low, a valid breakdown through the S3 ($1,890) level. The $1,862 low could be used as a first downside target. $1,800 and the downtrend line are seen as downside targets as well.
Buy a strong bullish engulfing pattern printed on the $1,900 level or a false breakdown with great separation below it. A bullish signal could appear also if the rate jumps above the R1 ($1,971) level.
