Gold trading within Triangle pattern on h4 chart, with Bearish expectations for the following week
The Price Action is currently strongly influenced by the fundamental events which added huge buying pressure on Gold throughout the last week, with XAUUSD trading within healthy ascending channel, finally forming the triangle pattern on late 24th and 25th March h4 chart.
Even though the Gold Spot traded with approx. 37 Point gains thought the last week, the weekly's chart candle failed to close above the 1964,90 strong resistance, suggesting possible bearish trend throughout the following sessions. It is also worth mentioning that the monthly's chart (March) candle is also expected to close within previously formed triangle (Idea that can be found among Related Ideas Section), which is supposed to be at or bellow the 1903,90.
What is really interesting that strong uptrend on US10Y and USDJPY (assets that are counter correlated to XAUUSD) never technically applied to Gold.
As shown on my chart, the 1955,90 represent lower triangle leg and at the same time the 1st support, which if broken, and I highly expect it will be broken till early US session, the Price Action should meltdown to 2nd support zone (March 1st -3rd, 17th and 23rd resistance), with possibility of extension to 1935,90. I will carefully monitor the market during the EU session and early US session and engage my selling order pursuing the previously mentioned targets only if fundamental events and it's affect on the market do not disrupt my analysis.
The Price Action is currently strongly influenced by the fundamental events which added huge buying pressure on Gold throughout the last week, with XAUUSD trading within healthy ascending channel, finally forming the triangle pattern on late 24th and 25th March h4 chart.
Even though the Gold Spot traded with approx. 37 Point gains thought the last week, the weekly's chart candle failed to close above the 1964,90 strong resistance, suggesting possible bearish trend throughout the following sessions. It is also worth mentioning that the monthly's chart (March) candle is also expected to close within previously formed triangle (Idea that can be found among Related Ideas Section), which is supposed to be at or bellow the 1903,90.
What is really interesting that strong uptrend on US10Y and USDJPY (assets that are counter correlated to XAUUSD) never technically applied to Gold.
As shown on my chart, the 1955,90 represent lower triangle leg and at the same time the 1st support, which if broken, and I highly expect it will be broken till early US session, the Price Action should meltdown to 2nd support zone (March 1st -3rd, 17th and 23rd resistance), with possibility of extension to 1935,90. I will carefully monitor the market during the EU session and early US session and engage my selling order pursuing the previously mentioned targets only if fundamental events and it's affect on the market do not disrupt my analysis.
