GOLD → Prerequisites for a possible breakthrough of support

31 Jul 2023

XAUUSD forms a false breakdown of the specified resistance level of 1959.8. The fundamental factors of last week indicate the weakness of the instrument

After a strong bearish impulse from the resistance of the 1983.7 range, a correction is formed aimed at retesting the 1959.8 area, the resistance is not broken and the price begins to decline. An attempt to retest the support of 1948 is being formed, which is a prerequisite for the market's readiness for further decline.
The 1948 retest and the formation of pre-breakout consolidation near the level can form a potential at which the market can break support and decline by 1933.
A reversal pattern is formed on D1, to confirm its implementation, the price needs to overcome the specified support.
A bullish setup can appear only if the 1959 breakout and price consolidation above this line.

Support Levels: 1948
Resistance levels: MA 50, 1959
I expect a 1948 retest with a possible breakthrough of support and further decline.

Sincerely, R. Linda!