On the H4 timeframe, Gold forms a double top chart pattern (20th March & 24th March) as the 2000 level holds strong resisting further upside moves. On the H1 timeframe, a similar double-top formation is formed on the 24h of March.
It is likely that the recent strength of the DXY and the formation of these chart patterns led to Gold trading lower, to the 1970 price level.
If the price of Gold breaks below 1970, this would not only signal a confirmation of the double-top formation on the H4 timeframe, it could indicate further downside for Gold, with the next support level at 1936.
However, while the uptrend on Gold is still strong, in the longer term, look for potential buying opportunities.
It is likely that the recent strength of the DXY and the formation of these chart patterns led to Gold trading lower, to the 1970 price level.
If the price of Gold breaks below 1970, this would not only signal a confirmation of the double-top formation on the H4 timeframe, it could indicate further downside for Gold, with the next support level at 1936.
However, while the uptrend on Gold is still strong, in the longer term, look for potential buying opportunities.
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