The Gold market has transitioned from a consolidation phase marked by narrow daily candle ranges to a period of pronounced impulsive movement during March and April. However, the bullish momentum has since diminished, preventing prices from consistently achieving higher highs.
During March and April, the Smoothed Heikin Ashi candles were notably positioned below the daily candles, indicating a strong bullish trend. This stands in contrast to the initial months of the year and recent periods, where the Smoothed Heikin Ashi candles have been hovering around the daily candle bodies, reflecting a lack of a clear trend due to diminished momentum.
After testing the upper boundary of the parallel channel, the XAUUSD price declined toward the lower boundary and briefly formed a lower high, signaling potential weakness. The Williams Percent Range is nearing oversold conditions as the price approaches the lower edge of the gently sloping parallel channel.
Gold Short-Term Trend: Bearish
A bearish break of structure has followed a previous bullish break of structure on the 4-hour chart, suggesting consolidation on higher timeframes. Currently, the market is in a less favorable condition, with price movements exhibiting a lack of momentum.
As the market conditions evolve, forex signals will be essential in navigating these challenging dynamics, providing traders with insights into potential shifts in the market.
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.
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