The Gold market has turned bearish, with the last bullish order block on the ascending trend failing to hold. The market posted a new lower high at 2420.0, gradually establishing a new bearish trend.
On July 19, the Gold price returned to a bearish order block after the Relative Strength Index (RSI) signaled that the market was overbought. The price decline paused only after dipping below the bullish order block, thereby defying the order block.
This decline created a wide fair value gap. Two days later, a retracement into this gap led to significant shorting, driving the price below the Bollinger Bands midline, a clear sign of bearishness. Currently, the RSI indicates a bearish market. The Gold (XAUUSD) price is expected to continue declining towards the bullish order block at 2236.
Gold Short-Term Trend: Bearish
On the 4-hour chart, the gold market trend has transformed to bearish following the failure of the support zone at 2386.0. The price has pulled back to a bearish breaker at the broken support zone, which is now expected to serve as resistance, sustaining the downward trend towards the bullish order block at 2236. Traders should consider using forex signals to identify optimal entry and exit points during this bearish trend.
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