According to technical analyst Ross J Burland, gold price is correcting higher. But after a short spell on the Fibos key, bears are likely to emerge. We have prepared Ross J Burland’s technical analysis on gold charts for our readers.
“It is possible for gold to find itself on the edge of the abyss!”
According to the previous analysis, the bulls were about to make their move. However, the gold price offered something for both bulls and bears last week. With this, cryptocoin.com As you follow, last Friday’s US Non-Farm Payrolls Report interrupted the downside with the Unemployment Rate coming to 3.7% versus the expected 3.5%. Average Hourly Earnings also missed the target by 0.4%, versus the expected 0.3% monthly. As a result, the US dollar bounced back from its 20-year high.
However, Fed funds futures were unchanged after the employment report. Markets are pricing in about a 75% chance for the Fed to raise rates by 75 basis points this month. It is possible that this will see a quick pause in the correction of the yellow metal for the next week. This is also likely to coincide with a break below a ten-year uptrend in the yellow metal near $1,676.
Gold price technical levels
The chart explains that the M-formation is a reversal pattern and is expected to pull the price into the structure at least.
As shown, the gold price followed its trajectory to a tee. The price has since corrected itself due to a strong sell-off on the daily timeframe. The bulls were heading towards a 38.2% Fibonacci retracement on Friday. This gives hope for a deeper correction at the beginning of the week as shown in the chart below:
Gold price, live updatesGold price is heading towards a price imbalance around $1,721. Beyond that comes a 50% average retracement around the previous $1,727. If the bears give ground to the bulls there, a touch higher is possible around $1,736 as the last defense is the 61.8% Fibonacci retracement.
On the four-hour chart, price is correcting an uptrend. Also, a 50% return to the average is likely to offer support as it meets the neckline of the bullish M-formation. Additionally, the Shark harmonic pattern, a bullish confluence that leaves room for a deeper correction towards the neckline around $1,750, is in play. However, the downside is likely to continue to retest 2021 lows around $1,676.
Gold price four hour chart
