- The bear flag on the daily chart is weakening the medium-term outlook.
- The level to beat for bears is the 1550 support.
Gold daily chart
XAU/USD is trading in a bull trend above the main daily simple moving averages (SMAs). However, the metal broke below a bear flag weakening the outlook of XAU/USD in the medium term.
Gold four-hour chart
Bulls are attempting to form a base near the 1550 level and the 200 SMA on the four-hour chart. However, the market is debating whether to resume the main uptrend or extending the pullback down. The buyers would need a clear break above the 1570/75 resistance zone to establish a bullish bias. On the flip side, if the price fails to make any progress above the above-mentioned price zone, the metal could become vulnerable to bearish incursions. A break below the 1550 support could lead to 1540 and possible to 1525 if the bears gather momentum.
Additional key levels
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