GOLD → Channel support breakthrough. Strong reaction

19 apr 2023

Gold at the stage of the next retest of the support line of the ascending price channel is experiencing an attempt to break through this line. Most likely, on the background of the dollar index pullback, we see a correction in gold. What's next?

The price can quickly enough reach the support area 1975-1980 (the rising dotted line). From this area, a pullback to the previously broken boundary is possible. Next, we should watch the price reaction on the resistance lines. There is a possibility of further price decrease to 1960.
The dollar index forms a false breakdown of the support level and can form a pullback up, hence gold will give us a reaction to this maneuver.
But we have to understand that the price breaks the trend support.

Strong resistance: the lower boundary of the uptrend, the level of 1980.
Strong support: 1975, 1960)
I expect the price may fall to key liquidity zones on the back of the correction. The price is not ready to go to 2070 yet.

Regards R. Linda!