FX.co ★ XAU/USD, GOLD

Hello traders, It seems that a long-awaited reversal of GOLD quotes for a medium-term southern correction has begun on the daily chart. This is indicated not only by the completed wave count in the current structure of its ascending formation but also by the formation of a candlestick reversal pattern "bearish engulfing" at the peak with a "doji" candle with long shadows. The key point is for the current bearish candle to hold until the end of the current trading session with a closing price below the price range of the last bullish candle, i.e., below the level of 5157. It would be even better if today manages to update the previous day's low. In this case, the nearest target for lowering metal quotes will be the lower trend line "2-4" of the existing ascending channel. The second target for lowering gold would be the middle line of the MA100, which is currently above 4200. At the moment, these targets may seem fantastic given the current conditions, but they could become realistic for a medium-term southern correction if the strengthening of the US dollar index resumes.