The gold price daily chart for today shows a huge downward move which occurred yesterday as the US Dollar rebounded strongly on the day. This enabled gold price to push below the 1513 central pivot, which also acted as the main support (Sep 23 low and Aug 19 high in role reversal).
The downside move was a resolution of the short-term rising wedge pattern, whose measured move should take the downward price move further south.
Having broken the key support at 1513, gold price is now in pullback mode as it tests this support-turned-resistance area on the day.
The price action of XAUUSD has formed a typical Elliot wave pattern, with price now in the corrective phase of the pattern. Attention will now focus on the US GDP report. A report that is positive for the USD could lead to a further leg down in gold price, while a USD-negative report could cause an uptick that could send gold prices above the new resistance formed at 1513.
So a renewed downward push for XAUUSD could see it targeting the 1482 level (Aug 13 and Sep 18 lows) which serves as the new support. This would also see the completion of the measured move from the rising wedge break point.
On the flip side, if XAUUSD pushes above 1513, this opens the possibility of attainment of 1525. If this move plays out, it brings gold price into a new test of the broken wedge lower border. Hence, invalidation of the downward move would come only if price breaks the Sep 3 high of 1547, which also serves as the intraday R2 pivot.Download our latest quarterly market outlookfor our longer-term trade ideas.
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