Bears in control: The ongoing battle for Gold

26 Sep 2023

In yesterday's post, I wrote that XauUsd is in no man's land as long as the price stays between 1915 and 1930, and, although at the time of writing this is still the case, the recent price action gives us some hints for the future move.
As we can see from the chart, after the low at 1885, XauUsd reversed strongly and a rise to 1950 followed. However, after the correction to 1900, the price couldn't manage to reach a new high and dropped again to the important 1915 zone. The new attempt from bulls was rejected twice in 1930 on Friday (BTW, this made me quit my long trade yesterday) and yesterday twice more.
All this suggests bears took total control and this will be the case as long as the price stays under 1930.
Technically, the 1910-1915 zone is confluence support, and for down acceleration, a break of this zone is needed.
In such an instance I expect a drop under 1900 to 1885 for the first leg down, but, in the medium term, a new drop under 1900 could lead to a test of major support at the 1850 zone.

Best of luck and happy trading!
Mihai Iacob

26 Sep 2023

Nota

New York open update:
As I expected and explained in the analysis, bears are in control and manage to push Gold under the support zone.
A daily break under this zone would expose 1885
Keep in mind also 1900 important figure also