XAU/USD: bulls should surrender
TP1 1,181 TP2 1,172 TP2 1,160
On the daily chart of XAU/USD, bulls couldn’t break the resistance at 1,216 and hold the pair above 1,209. It signals their weakness. Bears took the initiative and have been trying to resume the downtrend.
On H1, the trend was replaced by the consolidation. The “Broadening wedge” pattern is forming. If bears break the support at 1,196, there are odds of the further fall to 1,187, 1,181 and 1,172. These levels correspond to 50%, 61.8%, and 78.6% correction levels from the upward wave.
After forming a “hammer” candlestick on the D1 on Tuesday, XAU/USD rose to $1,467 and consolidated between this level and $1,461.
The USD started the day dropping against the Canadian dollar, now on a bullish reversal.