FX:XAUUSD corrects after testing $2222. News on Thursday shook the market after Powell's dovish statement on Wednesday, which spurred a false breakdown and a 2.5% fall
Yesterday the market met a bullish wave of news for the US market: Initial Jobless Claims down, PMI up, overall this is a locally positive scenario, but today at 13:30 Powell speaks, who can probably remind some of the things he said on Wednesday. Technically, gold is forming a retest of the 2166 support, which prepares us for a continuation of the decline that could happen before the news to test the strong liquidity area. But, Powell's speech may refresh traders' memory again. In this case, the market may resume the growth phase again, as the general fundamental background for gold is favorable for further growth.
Resistance levels: 2172, 2183 Support levels: 2166, 2152, 2144
Now on H1-H4 a range is forming and price is heading towards support - a classic trading strategy inside a range is to trade from its boundaries. Pay attention to today's speech of the Fed Head. His words can both cheer you up and shock you ;)
@RLinda gold will test 2120 after it was formed shooting Star yesterday on day TF
RLinda
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@aathiec92, Hi, I can't say anything about 2120 as the actual range boundaries are now 2195 and 2148.
The "shooting star" candlestick pattern is a bit misinterpreted by you. As far as I know, the candlestick's shadow should be on one side.
As for this candlestick, I can only say that the market tested a new high on the background of the rally, but could not break through the resistance formed earlier. And the news on Thursday contributed to the sell-off, which formed a false breakdown.
A retest of 2148 before further growth is possible