GOLD Significant downward price pressure!|KOL Analysis•Olimpiu Tuns

Gold is strongly bearish due to the USD‘s appreciation. It’s traded at $1,852 level, right below $1,864 former low signaling a massive pressure. Yesterdays major drop from $1,900.20 to $1,855 confirms a deeper corrective phase.

USDXs further growth could push the price of gold towards fresh new lows. The dollar index has received a helping hand from the US manufacturig and services data. The Flash Manufacturing PMI increased from 53.1 to 53.5 points beating the 52.5 estimates, while the Flash Services PMI has decreased from 55.0 to 54.6 points, less versus the 54.5 forecast.

Today, the US Unemloyment Claims, New Home Sales, and the FED Chair Powell Testifies could shake the markets. Technically, the gold price is bearish after the aggressive breakdown below the $1,900 psychological level.

● XAU/USD Gap Down!

Gold gapped through the $1,864 static support signaling strong sellers on the daily chart. It has tried to close the gap down but Im afraid that it will reach new lows till the end of the day.

Ive told you in my previous analyses that XAU/USD will develop a broader corrective phase if it drops below the $1,900 level and under the upper median line (UML) of the major ascending pitchfork.

The upside 50% Fibonacci line is seen as potential downside target. Also, the $1,800 level could attract the rate if the US dollar continues to increase versus its rivals. From the technical viewpoint, Gold could drop way lower after its breakdown from the symmetrical triangle.

Closing below $1,864 confirms another lower low and signals a further decline. Only a false breakdown below this downside obstacle could announce a temporary rebound.

● GBP/USD Deeper Drop Expected!

GBP/USD has made another lower low at 1.2674 level yesterday indicating a further drop. Now, is pressuring the 61.8% (1.2712) static support, a valid breakdwon through this levels bring a short opportunity.

The 50% Fibonacci line (ascending dotted line) of the ascending pitchfork is seen as a potential downside target. This line has attracted the price in the past. Technically, GBP/USD is bearish and it should continue its bearish momentum after its failure to retest the median line (ML).

The 1.2463 (50%) level could be used as a downside target as well if the pair continues to drop.

● NZD/USD Double Top Confirmed!

NZD/USD plunges as the USDX edges higher. The NZD has taken a hit from the New Zealand Trade Balance data. The economic indicator dropped from 447M to -353M in August, below -350M estimate.

The US Unemployment Claims could drop to 845K in the previous week, a bigger drop could boost the USD. NZD/USD is expected to hit the 23.6% retracement level soon.

Yesterdays aggressive drop has validated a Double Top pattern which it confirms a reversal. Actually, the pair was somehow expected to develop a corrective phase after escaping from the major up channel.

A valid breakdown below the 23.6% (0.6486) level confirms a larger corrective phase, the 32.8% (0.6292) could be used as a downside target.

{About the Author}

Olimpiu Tuns is a seasoned market analyst / trader / trainer on the financial markets with expertise in forex, cryptocurrencies, commodities, futures, options, index, CFD for more than 8 years. He is also a famous blogger in both technical and fundamental analysis, trading signals, trade setups, etc.

He has worked as a Market Analyst / Consultant for three major Brokerage companies, Admiral Markets, MultiBank Exchange Group, and InstaForex (live webinars, market analysis, educational materials, video analysis, video tutorials, ghostwriting, content creator), as a Social Media Manager and as a Financial Markets & Crypto Analyst / Contributor for very important news portals/blogs (investing.com, benzinga.com, forexalchemy.com actionforex.com, countingpips.com), websites, educational platforms (Forex.Academy, Forex.Today), independent clients, etc.

Olimpiu Tuns currently works as a Financial Markets & Crypto Analyst / Trader / Trainer / Portfolio Manager.

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