Gold Spot / U.S. Dollar
Short

XAUUSD in the channel

2 142
XAUUSD is in a mid-term uptrend and is bouncing in the ascending parallel channel.

Currently, price is pushed to the upside after touching the channel’s lower side.

If we take a look at the previous price moves, we can see there is more downside pressure.

Although price has made higher lows and higher highs,it has been dropped with only two bearish candles, in comparison with the upside moves which are more than 10 bullish candles.

So, we can expect a downside breakout on the channel.

If price breaks the channel and closes below 1798, we can expect a drop to 1787, and in the case of an downside breakout and candle closure below this level, the next target would be around 1752.50

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