- XAU/USD is moving deeper into resistance territory.
- Bears are watching for the formation of bearish structure.
Gold remains in the hands of the bulls, but there are prospects of a correction to the downside.
The following is a top dow analysis that illustrates the market structure and potential outcomes.
The monthly chart shows the price is meeting a critical resistance zone.
The weekly chart shows that the price is meeting a 38.2% Fibonacci level and the focus is on the prior resistance structure that would be expected to act as support on the downside.
However, there is a daily support structure that may thwart the weekly bearish outlook.
Given the support, then there is a focus on the upside for the meanwhile to target prior structures.
A 50% mean reversion is in focus which has a confluence with the prior structures looking left.