GOLD → Resistance retest in correction phase

11 Sep 2023

XAUUSD is strengthening on Monday and is testing flat resistance with a false breakdown. Consolidation below 1928 is forming. The growth of gold is based on the fall of the dollar index before reaching a strong resistance

On the chart, we see a flat formation after breaking the ascending channel support. Yesterday I pointed out that the DXY is in a strong bullish trend, but since the price is near strong resistance, a bounce down may follow before further gains, which is what we are actually seeing.
As far as XAU is concerned, I am waiting for a fall after a false breakdown of resistance. Before the fall we are held back by the level of 1926. The target in this case will be the support at 1916
BUT, if the dollar continues to fall, gold will break 1928, and will reach 1939, also the price can test MA-200.
On the global timeframe the preconditions for further fall are developing.

Support levels: 1926, 1916
Resistance levels: 1928
I expect gold to decline in priority, but it should be understood that the scenario may break down based on external factors.

Regards R. Linda!

11 Sep 2023

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