GOLD XAUUSD Chart Technical Outlook Gold losses to be limited to the confluence zone
We have seen a correction to the downside from the $2,195 swing high. This negative pressure has continued overnight. With three downside support zones, I am looking for further negative momentum to be limited. These are:
- $2,133 – channel base
- $2,129 – bespoke support
- $2,124 – projected AB leg of a Bat formation.
Conclusion: with the completion of a bullish Elliott Wave count (5 waves) at $2,195, it would suggest that the current move lower is corrective. It should be noted that a rally higher from the $2,124 support level could be limited, with the possible building of a Bat. This formation will not be completed until $2,009.
Resistance: $2,168 (channel top), $2,176 (supply), $2,195 (swing high)
Support: as above
