Gold (XAUUSD) Market Analysis Signals Impending Bearish Reversal Trend

Market Analysis – January 23

Gold (XAUUSD) market analysis signals an impending bearish reversal trend. The Relative Strength Index (RSI) indicates an overbought condition at 70.33, which often precedes a potential price reversal. The 9-period Simple Moving Average (SMA) at $2725.0 currently serves as a dynamic support level. However, the divergence between price action and the RSI warns of decreasing bullish momentum.

Gold Key Levels

Resistance Levels: $2790.0, $2880.0, $2960.0
Support Levels: $2580.0, $2540.0, $2470.0

Gold Long-Term Trend: Bearish

This weakening trend suggests the possibility of sellers stepping in, aligning with the broader market sentiment for a bearish shift. The price action highlights a failed attempt to break the resistance level at $2790.0, forming a double-top structure. This key resistance zone, combined with the rejection seen at the order block (OB), strengthens the bearish narrative.

The steep upward movement toward this level appears unsustainable, especially as price remains unable to establish higher highs. Additionally, the trendline starting from November has a critical role, and a break below this support line will confirm bearish dominance. Based on these observations, a pullback toward $2600.0 is probable. Should the major trendline fail to hold, further declines will likely take the price of gold to $2580.0. Traders may consider incorporating forex signals to refine their strategies as the bearish trend unfolds.

Gold Short-Term Trend: Bullish

XAUUSD is approaching the key supply zone around $2790.0, indicating potential resistance and a shift in momentum. The RSI on the 4-hour chart shows an overbought condition at 72.49, further supporting a possible price reversal. A Change of Character (CHoCH) is impending, suggesting that bearish momentum is building. If price fails to sustain above $2740.0, it could trigger a selloff toward $2670.0 or lower levels.

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