Gold, long term view

XAUUSD / 1D

Hello traders, welcome back to another market breakdown.

Gold has been trading in a trading range. However, the price had broken from the support level with 2 weekly bars closing outside the range which makes the breakout more valid, so traders should expect more down side.

Bears see:
1- Breakout from the range.
2- The price is trading inside a bearish channel.
3- When you get a breakout from the range followed that is coming from a double top, you normally get a measured move lower based on the length of the trading range.

Bulls see:
1- The price is always still in long.
2- 80% of breakouts fail.
3- There are still 5 days before the monthly bar closes, so many bulls will pay attention if the bar closes back inside the range, if that happens, that would make their probability higher to reverse from support.

Since the price is still bearish on the daily, as a trader you should assume more down side until it's proven otherwise.

Fundamentals:
Assets priced in dollar doesn't like when the fed increases the rates, a strong dollar crahses gold as well, until a fed pivot, the price is always in short.

Trade safe,
Trader Leo.