Gold’s Bullish Rally Hits Resistance Level: Potential Reversal Ahead

Market Analysis – July 6

Gold has exhibited a bullish ascent over the past week, signaling a short-term uptrend. However, this upward movement is likely a retracement within the context of a higher time frame bearish trend.

The ongoing ascent of XAUUSD may soon encounter a pause as it reaches a significant resistance level.

XAUUSD Key Levels

Demand Levels: 1900.0, 1880.0, 1850.0
Supply Levels: 1930.0, 1980.0, 2069.0

Gold Long-Term Trend: Bearish

Despite the recent bullish activity in the Gold market lasting for four days, the Moving Average with a period of 21 remains positioned above the current price, indicating the continuation of the long-term bearish trend.

The Williams Percent Range on the Daily Chart shows a bullish reading, reflecting the short-term price rise. However, it is important to note that the possibility of a retracement turning into a trend reversal exists if the supply level of 1930.0 is breached.

 

Gold Short-Term Trend: Bullish

Traders are currently monitoring the market structure for a potential shift and observing a failure swing at the resistance level to confirm short positions. The Williams Percent Range is currently in overbought territory, suggesting a potential readiness for a price decline.

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