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XAU USD 240 Minute Chart Analysis

XAU USD Technical Analysis: Bearish Momentum signalling a strong downward bias

 Gold’s current state draws attention as it navigates a blend of bearish sentiment and range-bound behavior. The interplay between its position below the 200-day and 50-day moving averages sets the stage for exploration, hinting at a potential bearish range scenario. Amidst this backdrop, two distinct scenarios emerge, each offering a unique perspective on the future trajectory of gold’s price movement.

Scenario 1: Presenting a Potential Bearish Continuation

Gold currently embraces a bearish trajectory within a contained range, positioned below both the 200-day and 50-day moving averages. This dynamic hints at the potential emergence of a bearish range scenario within the market. In the context of the first scenario, there exists the likelihood of a downward movement from its current standing. This envisioned descent could lead to a probing of support levels around 1885, signifying a significant juncture for potential market reaction.

As this bearish momentum unfolds, a deeper downside push might materialize, targeting the 1880 level as the next potential stopping point. Should bearish sentiment continue its sway, market observers could witness an extension towards the 1874 level, which stands as a formidable stronghold of support.

Scenario 2: Exploring Possible Upside Potential

Conversely, within the framework of the second scenario, a resurgence in the price of gold from its present position could propel the market higher. This upward movement could trigger a challenge against established resistance markers at 1901 and 1904, which could be indicative of the market’s intent to break out from the bearish confines.

As this upward momentum gains traction, the price action may find itself testing the resistance of the 1907 level.  This ascent could potentially set the stage for a broader progression towards the resistance levels situated at 1910 and 1914, showcasing the potential for a meaningful upward shift.

Key levels to watch are 1930,1907,1931,1924, 1901,1892

Level 11885.151901.50
Level 21878.501910.28
Level 31874.181914.50