XAU/USD Analysis: Gold Price Chart Displays Bearish Signals
Analysing the XAU/USD chart on October 18, we:
Established a long-term upward channel (indicated in blue);
Suggested that the target for bulls might be the upper red line, drawn parallel to the red corrective channel.
Since then:
The gold price rose to the upper red line and the top of the blue channel,
But then experienced a bearish reversal, dropping sharply on October 31 amid economic news.
Today, technical analysis of the XAU/USD chart shows several bearish signals, specifically:
Gold has moved into the lower half of the blue channel, crossing below its midpointindicating supply pressure;
The $2757 level has once again acted as resistance (marked with arrows);
A bearish "Head and Shoulders" pattern (SHS) is forming on the chart.
A central question for November will likely be whether bulls can keep the gold price within the ascending channel. The channels lower boundary may serve as a support level.
However, its possible that, with new developments in geopolitics and macroeconomics, the XAU/USD chart will continue to display price action within a more defined downward channel.
Read more: https://fxopen.com/blog/en/oa-xau-usd-analysis-gold-price-chart-displays-bearish-signals/
Text source: Forex Trading Blog
