Title
XAUUSD H4 | Potential bearish drop
Type
Bearish drop
Preference:
The price is reacting off the pivot at 3,366.42, which is a pullback resistance that is slightly below the 50% Fibonacci retracement. A rejection from this level could lead the price toward the 1st support at 3,332.08, an overlap support.
Alternative Scenario:
If the price breaks above the pivot, it could rise to the 1st resistance at 3,404.53, a swing high resistance level.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.