GOLD → Retest of the lower boundary of the range in a ↑ market

2023年11月7日

XAUUSD continues to correct, but at the moment there is nothing terrible, the price is directed to the support to retest the liquidity area.



The continuation of the 1997 - 1964 consolidation on the gold market or the beginning of the correction may trigger the dollar, which most likely lost the influence of the NFP and is forming a pullback after the breakout of the range. If the dollar returns to the 105-107 range again, the market will continue to stand still. Either the dollar is still waiting for more influential news, such as rate related news, which may be hinted at by the Fed chief, who spoke twice this week. There is now an increased likelihood of monetary policy easing, which could weaken the dollar, but let's not jump to conclusions.

From the TA point of view: gold is directed to the area of 1964, where there is a huge pool of liquidity, the market can test this area before further breakout - standard trading strategy inside the range (buy at support, sell at resistance).

Support levels: 1964.4, 1961
Resistance levels: 1974

Gold is inside the range and the reaction of the price to the support, as well as the reaction of the dollar, will determine the further scenario in the market. In the long term, I expect growth after a false breakout of support.

MGC1! GC1! XAGUSD US500 DXY

Regards R. Linda!