Hope you can see in my added photo $XAU created massive H&S pattern.... Still gold holding it's key support when XAU will break this pattern support then technical target will be 3910... That's just a H&S pattern target.... Now question is we will open long or short ?
That's a long term target bashed on this we can't open short or long.... that's just a trend analysis.... First of all if you wanna be a good trader you must need to know how to find out trend.... If you can predicted trend then you can make money continuously without any losses... Now gold is holding a support which is at 4222-2250... from thisd level market can pump again because previously gold respected this support zone....
As you can see in a shorter timeframe $XAU is following massive downtrend in 30m timeframe.... Now again xau rejected from upper resistance line so in a shorter timeframe market can dump again.... But if market bounce back before it's previous structure low that's a breakout signal... if gold dumps from here and bounce back from 4262 that means GOLD will break 4320 level and it may go more to the upside... I will explain what will happen after breakout....
If XAU breaks this downtrend resistance then it can go 4371 which is a another important resistance..... GOLD must need to break this before another huge uptrend move... But I don't think gold will break that orange trend resistance.... we can expect another dump from 4371 level....
in 1d timeframe RSI is showing massive sell pressure.... that means market can dump more.... In a shorter timeframe market can bounce back but in a longer timeframe market is showing massive sell pressure....
DXY looks bullish in 1d timeframe.... DXY bounced back from trend support so technically DXY can touch upper resistance line then GOLD can go downside because of negative correlation...
summary in a shorter timeframe market will dump short target range - 4260-4222.... If xau bounced back from 4260 range then gold can touch 4371 range then another dump.....
If gold touch 4222 range that means gold will go more to the downside.... from 4222 range market can bounce back again because that's a key support after a bounce back eventually gold will dump again.....
If you have any question do comment I will ans....
