XAUUSD – Price Action Hints at a Short Term Correction

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Gold prices closed last week with a doji candlestick pattern right near new highs.

Price pulled back after testing highs of 1747.04. The set up suggests a possible pullback lower.

As long as price does not close above the 1709 level, we expect a move lower.

The downside support is at 1630, which makes for a short term target. Ideally, a retest of the 1709 price level for a test of resistance will further validate this view.

As long as the previous high of 1747 is not breached, the downside is quite likely.

A close below 1630 could potentially accelerate the declines down to the 1550 level which marks a previously tested support area.

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