GOLD XAUUSD Chart Technical Outlook correcting lower in the BC leg, correlation is key
Gold – although the commodity pushed higher during Jerome Powell’s speech, the rally stalled close to our bespoke resistance level of $2,324.
The one-hour chart highlights Gold building a bearish cypher pattern known as a Crab. This formation will be completed at $2,387. Bespoke resistance is located at $2,391. We are currently trading lower within the BC leg. We have a demand zone located at $2,296.
The 8-hour chart highlights a bullish Ending Wedge formation. On a break of yesterday’s high, the measure move target is $2,402.
US10Y – yields are negatively correlated with gold. Resistance is located at 4.65%.
Resistance: 2328 (yesterday’s high and wedge breakout), 2387 (Crab), 2391 (bespoke)
Support: 2296 (demand), 2281 (swing low), 2214 (bespoke)
