Gold (XAUUSD) Breaks the Bearish Trendline

Market Analysis-June 8

The Gold market turned bearish on the higher timeframe (daily) at the cross of the Simple Moving Average (SMA) of periods nine and twenty-one in May. The price declined under a resistance trendline. The resistance trendline has been defied with a retest at the supply level of 1978.0.

Gold Key Levels

Resistance levels: 1978.0, 2043.0, 2070.0
Support levels: 1890.0, 1804.0, 1693.0

Gold Long-Term Trend: Bearish

Three white soldiers established a price rise for Gold from 1978.0 to 2070.0. After a new high was formed, the price crashed rapidly to break the significant level of 1978.0 and establish a shift in market structure. A bearish order block hung above 1978.0 as the price declined further.

The bearish trendline broke after a push-up in price after the Stochastic signaled the market was oversold. The Moving Averages are still hovering above the daily candles, revealing a descent. A pullback is anticipated to mitigate the bearish order block above 1978.0.

Gold Short-Term Trend: Bullish

Relatively equal highs resting at 1978.0 appear to be liquidity regions. The equal highs (eqh) are likely to be swept in a bid to rise into the bearish order block resting above. A retest has followed the break of the bearish trendline to reveal a pullback.

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