On the daily chart, Gold has advanced to a significant resistance zone near the 1880 level. This zone is characterized by a convergence of key factors, including the prior support level, which has now transformed into resistance, along with the presence of the red 21 moving average and the 50% Fibonacci retracement level.
In all likelihood, sellers are poised to take action within this zone, placing their trades with a well-defined risk management strategy just above this level. Their aim is to position for a potential downturn toward lower price levels. Conversely, buyers are closely monitoring the situation, hoping for a convincing breakout that would lead the price first to the downward trendline and, ideally, to a broader breakout.
This revised description offers a more detailed and precise analysis of Gold's price action, emphasizing the significance of the resistance zone and the key elements affecting the market's direction.
On the 4-hour chart, the price has already encountered and responded to the established resistance zone, subsequently declining to retest the previous swing level. Here, a resurgence transpired, driven by buyer participation at the red 21 moving average and the support level.
Should the price undergo further descent and breach the critical 1865 support zone, this would furnish sellers with a validated signal indicating a shift in the prevailing trend. Consequently, they would be prompted to engage with heightened aggression, seeking to prolong the downward trajectory toward lower price levels.