Fibonacci channel analysis-Downtrend in gold was expected

velmunis Updated   
OANDA:XAUUSD   Gold Spot / U.S. Dollar
Since start of this year the shining metal has loses its shine as its started to fell off from the 1960.00 which is 400 pips below the Major key psychological level acting as strong resistance for the bear.

We can see the longer term downtrend channel formation since January And Gold is unable to break this downtrend channel formation.

The fundamental factors such as The vaccine roll out around the globe and the declining phase of the covid-19 and the economic optimism around the globe is also a key factor which causing the investors were fled to the stock market and equity markets.

Because the risk sentiment was shifted from negative to positive in recent months. The industrial and service sector was slowly gaining momentum. Another one factor here to consider is the galloping in the prices of Bitcoin and other stable coins.

Nowadays the investors are more interested to invest in cryptocurrencies.Though the global gold consumption was slowly regaining the price patterns were still pointing downwards Gold has broken three major key psychological levels such as 1900.00 1800.00 1700.00 Currently 17000.00 was acting as dynamic support and resistance for the both bull and bear.

The price was well below the Point of control and The price was trading below the 200,100 Exponential moving average. only 50 EMA was acting as last resort of hope for the bull.

In Fibonacci channel the price has tend to bounce from .50 and 0.618 retracement level and the price cannot fall below this levels. Ahead of the today FOMC meeting
the direction was unknown if the price broke the downtrend channel the price might reach around 1800.00 If the price is still within the downtrend channel it will reach
around 1650.00 as the next downside target.

We can see a triangle formation and it was expected to break to the south
Due to the FOMC meeting USD was beaten up inturn gold went bullish upto 1750.00 and manage to reach the upper side of the trendline/Fibonacci level..If it's hold the ground we can expect further buying pressure untill 1800.00


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