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  • The market is losing steam as the market is breaking down from the bear flag.
  • The level to beat for bears is the 1560 support. 
 

Gold daily chart

 
XAU/USD is trading in a bull trend above its main daily simple moving averages (SMAs). After rejecting the 1600 figure earlier in January, XAU/USD has been trading in a bear flag in the second part of the month. 
 

Gold four-hour chart

 
As the market formed a double top/lower low with the high established at the start of January, the market is losing steam below the 1576/70 price zone. The sellers want to extend the move towards the 1560 and 1550 levels. Resistances are seen near 1570 and 1576 price levels. 
 
 

Additional key levels