- Gold bulls are making hard work of a tough resistance area.
- The focus is on the downside to weekly support on a hold below resistance.
Further to the prior analysis, Gold Price Analysis: USD bears sink their teeth, gold breaks resistance, the break was only partial and the price has subsequently been knocked back below the structure.
The following illustrates where the bias now sits if a retest of the resistance holds.
Prior analysis, Gold
The structure was identified with the FXStreet Confluence Detector as a strong area of resistance:
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The FXS Technical Confluence Detector is an in-house tool, developed by FXStreet experts, that allows you to identify those price levels where congestion of indicators like moving averages, Fibonacci levels, Pivot Points occurs. Knowing where these congestion points are located is very helpful as it allows the trader to see these areas of support and resistance easily.
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Live market, Gold
On a restest of the structure, bears will be looking for a downside extension of the bearish trend.
In prior analysis, the downside target was identified as follows and bears will want to now see a break of the dynamic trendline support:
From a daily perspective, this may play out as follows:
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