GOLD → False breakdown and support retest. Will there be growth?

8 nov 2023

XAUUSD is forming a false break of the support of the range, in which the price has been trading for three weeks. NFP is no longer influencing the market and all traders are waiting for the Fed chief's speech. What to expect from the market?



The DXY finally lost influence from the NFP, the strong news was short-lived as the growth was influenced by comments on the Fed, which the day before left open the possibility of further policy tightening.
The Feds are reacting rather harshly to rumors of rate easing as they try to steer market expectations away from rate cuts and price manipulation, as a consequence we see a corresponding reaction in the market.



Regarding the range support, there are only two scenarios at the moment: breakout or false breakout. The price is forming a retest and lower volatility before the Fed chief's speech. More sluggish and weak data (even hints) may give a bullish push to gold and further strengthening. Regarding this situation, I have identified two possible scenarios on the chart, which are developing in relation to the support of 1965. Consolidation above or below the level will be the confirmation of further direction.

Support levels: 1964.4, 1961
Resistance levels: 1969.9

I assume that we have a high chance for further growth, geopolitics, a lot of rumors about the future Fed rate may favor the situation. But still, let's wait for the news.

Regards R. Linda!