Key Highlights
· Gold price started a downside move from the $1,355 level against the US dollar.
· There was a break below two bullish trend lines at $1,345 and $1,335 on the 4-hours chart of XAU/USD.
Gold Price Technical Analysis
There was a major top formed above the $1,355 level in gold price against the US dollar. The price declined sharply and broke many important supports near $1,335 to move into a bearish zone.
Looking at the 4-hours chart, there were back to back bearish candles from the $1,354 swing high. The price declined and broke the 50% Fib retracement level of the last wave from the $1,319 low to $1,365 high.
More importantly, there was a break below two bullish trend lines at $1,345 and $1,335 on the 4-hours chart of XAU/USD.
These are negative signs, which could ignite more declines in gold price in the near term. The next stop for sellers could be near the 1.236 Fib extension of the last wave from the $1,319 low to $1,365 high.
