GOLD → Breakthrough 1939. Greetings from the Bears

21 Jun 2023

XAUUSD breaks support after another retest of the 1939 level. Consolidation is forming and the price is headed down. What can happen and what should we be prepared for?

There is a large pool of liquidity below the 1925 area, and if it touches this level, the volumes may surge and the volatility may increase. The price may retest the previously broken 1939 before further declines.
But at the moment the fact is that the market is about to fall and there are many reasons for that, all of which are pointed out on the chart.
After breaking through the support and consolidation of the price below the level, we got an entry point. The price is expected to fall under the pressure of the bears and the current trend.
At 14:00 GMT FED Powell is broadcasting, it is worth looking out for his words. (Expect increased volatility).

Resistance levels: 1939, SMA-50.
Support levels: 1925, 1914, 1885.
As a priority I expect the price decline towards 1900, but based on the situation, from the key support levels or before the news something unpredictable may happen. The priority is to sell.

Sincerely R. Linda!

21 Jun 2023

Nota

Awesome! The implementation of the setup is 100%.

We get almost 150 pips after a support breakout. The entry point to the short position was formed after the price consolidated below the support level of 1939.

Most likely, the fall could continue