Gold (XAUUSD) tanked further on the day from intraday highs of 1466.57, and is now testing major support at 1452.54 (S1 pivot support and previous high of July 19). This move now confirms the break of previous intraday support at 1469.28 (previous low of October 1).
On the 4-hour chart, this latest leg to the south represents a continuation breakout move from the bearish pennant pattern.
A break of 1452.54 to the downside could target 1446.03 (S2 pivot), which remains the next short-term support target. If the downside move is strong enough, 1435.80 (S3 pivot), which is a previous high of June 25 and July 3 working in role reversal could also come into the picture. This would provide more room for the measured move of the pattern to run to completion.
On the flip side, if 1452 is able to hold on strongly as a price support, it could be the springboard for price to bounce to 1466.57 in a retest of that price level.More content