Gold trades at 1,736 level after failing to take out an immediate upside obstacle. The price dropped today as the USDX rebounded after yesterday's sell-off. The yellow metal should drop again if the Dollar Index resumes its upside reversal.
XAU/USD stays in the seller's territory despite the most recent rebound. The bounce-back was natural after the last sharp drop. Still, the risk-on sentiment could help the bears to take full control and drive the price of gold lower in the end.
XAU/USD Rejected By Static Resistance!
XAU/USD increased within a minor up channel which is seen as a potential continuation pattern. Dropping from this pattern and stabilizing under the inside sliding line (SL) could add a selling opportunity as the rate may drop deeper.
Gold rallied after FOMC, but the pressure remains high as long as the price is traded under the descending pitchfork's median line (ML) and under the R1 (1,752). Personally, I believe that a larger growth, a bullish reversal, could be validated only if the price jumps and stabilizes above the major descending pitchfork's median line (ML).
Gold Trading Tips!
A valid breakdown from the up channel's body represents a selling opportunity with targets at S1 (1.689) and 1,676 levels.
