Dropping below 1,945 – 1,942, major downside obstacles announce a potential drop toward the median line (ml). Failing to retest the upper median line (uml) in the last attempt announced intense downside pressure. The median line (ml) acts as a magnet and can attract the rate if it stays within the pitchfork’s body.
The metal has rebounded slightly and is located at $1,931 as the Dollar Index retreated after the US data. Fundamentally, the greenback took a hit from the US Unemployment Claims, which came in at 227K in the last week versus the 226K expected and compared to 221K in the previous reporting period.
- The XAU/USD remains bearish as long as it stays below the S1 (1,940).
- The median line (ml) could attract the price.
- Tomorrow, the US Average Hourly Earnings, Unemployment Rate, and NFP should move the rate.
The gold price dropped as low as $1,929 today, registering a fresh weekly low. The sell-off was highly anticipated after the US ADP Nonfarm Employment Change was reported at 324K, above the 191K expected.
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Technically, the XAU/USD extended its sell-off after escaping from the minor flag pattern and taking out the $1,942 former low. It has stabilized below the weekly S1 (1,940), signaling more declines. The current range could represent a distribution pattern. The yellow metal could approach new lows if it stays below the S1.
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