XAU/USD ended its temporary rebound and now it has turned to the downside. It's trading at 1,808 and it seems very heavy, it could approach and reach new lows anytime. The DXY crashed in the short term but now it seems that the correction has ended. DXY's new rally should force the yellow metal to drop.
Later, the fundamentals should drive the rate, that's why you should be careful, anything could happen. The Canadian GDP may report a 0.0% growth while the US CB Consumer Confidence is expected at 108.5. Furthermore, the US HPI, Richmond Manufacturing Index, Goods Trade Balance, and Prelim Wholesale Inventories data will be released as well. Positive US figures could push Gold down.
Gold Downside Pressure!
Technically, XAU/USD found resistance at 1,818 and now it stands above the 1,806 downside obstacle as well. The rate registered a false breakdown with great separation through it but it continues to stay down signaling massive downside pressure.
You knew that the bias is bearish as long as it stays under the downtrend line. Failing to approach and reach it signaled strong sellers.
XAU/USD Forecast!
A valid breakdown below 1,806 activates more declines and represents a bearish signal. The S1 and S2 are seen as downside targets.
