Market Analysis

Technical analyses: Gold did what was expected

Sell-off in Gold(XAUUSD) was expected when we take into consideration the technical overview and technical tools setup. Late Tuesday and Wednesday, traders drove the price towards the previous support level at 1785.00, which was retested and quickly bounced back just to relax bearish force for some time.

According to the chart, the significant consistency of lower lows clearly defines a bearish trend. As the analyst suggests consistency in price below 1790.00 is the safe zone for bearish traders targeting further low levels such as 1772 and 1758. It is still a long way to go but these levels are about to be tested having in mind today’s sell of for more than 20$ within 3 trading hours. Sell-off occurs after Powel testified, the statement that always bubbles the market and more than often gives a direction for the long term to the whole trading environment.