The price of Gold crashed after reaching 1,677 today. Now, it was located at 1,665 and it seems very heavy. As you already know from my previous analyses, the bias is bearish, XAU/USD could drop towards new lows at any time.
DXY's rally forced the yellow metal to drop again. The price action developed downside continuation patterns ahead of the FOMC. The FED is expected to increase the Federal Funds Rate by 75bps again, from 2.50% to 3.25%.
Tomorrow, the BOJ, SNB, and BOE could bring more volatility and sharp movements. Anything could happen, that's why you need to be careful.
XAU/USD Exhausted Buyers!
As you can see on the H1 chart, XAU/USD is trapped between 1,680 and 1,659 levels. The price action developed also a triangle within this range. Escaping from these patterns could bring new opportunities.
In the short term, the price of Gold tried to rebound after its massive drop. Still, its failure to make a new higher high announced more declines.
XAU/USD Outlook!
As long as it stays under the median line (ml) of the descending pitchfork, the bias is bearish. A valid breakdown below the uptrend line and through 1,659, a new lower low may activate more declines and brings new short opportunities. The S1 (1,641) and the lower median line (lml) are seen as potential downside targets.
