- XAU/USD is in the hands of the bears, but it could be a short-lived victory.
- The bulls are seeking a discount from a solid support.
Gold is testing a critical area of support and the bears remain in control at this juncture.
However, there is a probable cause for the upside on failures at a more solid area of demand and the following analysis illustrates just that.
Daily chart
The support is a solid structure that would be expected to hold and drive the price through the near term resistance.
If the structure gives out, there is a compelling case for the downside to retest a more reliable area of demand.
From a 4-hour perspective, Momentum is with the bears, and the price is pressured below the 21-EMA, but an upside correction to retest prior support is on the cards.
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