XAUUSD Chart Technical Outlook Gold bounces from the cypher pattern support but faces resistance at $1,958
Although Gold posted a mild recovery during the European session, the rally was sold into, and the subsequent downward pressure resulted in the yellow metal trading down to $1,930.
The intraday chart highlights this level as the completion of a cypher pattern known as a bullish Bat. This has resulted in the immediate bias being mildly bullish.
It should be noted that resistance today is located at $1,958. With this being close to the projected Fibonacci resistance level of $1957.50, and the completion of the AB leg of a Crab formation, we would look for this upside barrier to hold strong today.
DXY – the US dollar index has an inverse correlation with Gold. We are now assessed as being in the unpredictable BC leg to the downside of a Bat formation.