- Gold’s daily close below resistance, or old support, offers further conviction to the downside.
- There needs to be a restest of the structure from where bears can set up for a 1:2 risk to reward.
Gold continues to move in accordance with the prior analysis in progress which can be delved into here: Gold Price Analysis: Bears below key support
The following is a top-down analysis which illustrates where the opportunity lies in the current price action.
Daily chart
We have seen a daily close below resistance, or old support, which opens the prospects further for a run to the 61.8% target.
4-hour chart
The 4-hour chart’s bearish head and shoulders show that the bears can take advantage of a sell limit order from the structure for a high probability trade setup with a 1:2 risk to reward.
However, as explained fully in the prior analysis, there are long-term risks skewed to the upside from both a positioning, spot and technical standpoint.
As for the US dollar, there could be a bottoming pattern in the making as follows:
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