Welcome everyone to the afternoon. Hope you all are well. In today's analysis, those who observed trading results on Tuesday will agree that the results seen on Wednesday will exceed those seen on Monday. There was a 150 pips increase in the price of gold on Wednesday, which was a noticeable surge compared to Monday, and it also indicates an increase in market dynamics. Additionally, Wednesday may witness significant price movements in gold.
The price is attempting to break below its support area on the D1 chart. However, despite these attempts, the price remains trapped within the support zone without much movement. If sellers successfully penetrate this support area, we can expect further downward movement. If the price stabilizes above this resistance level, I anticipate continued upward momentum towards the 1.2645 resistance level. If a rounding top forms near 1.2680, the price may retreat towards the local support level at 1.2710. Another rounding pattern may emerge near this support level, signaling a new uptrend towards northern targets.
Similar patterns are often observed on daily charts when the price approaches resistance levels. If today's daily candle closes with a large body and breaks below the support area, the next bearish target for gold could be around 1.2790. Such scenarios may provide better selling opportunities in the coming days, which were not present earlier in the week. Price declines typically occur during the American session, affecting the success of earlier buying scenarios, as this is when the declines usually happen. Hopefully, the third target near 1.2730 will be achieved soon.
The price is attempting to break below its support area on the D1 chart. However, despite these attempts, the price remains trapped within the support zone without much movement. If sellers successfully penetrate this support area, we can expect further downward movement. If the price stabilizes above this resistance level, I anticipate continued upward momentum towards the 1.2645 resistance level. If a rounding top forms near 1.2680, the price may retreat towards the local support level at 1.2710. Another rounding pattern may emerge near this support level, signaling a new uptrend towards northern targets.
Similar patterns are often observed on daily charts when the price approaches resistance levels. If today's daily candle closes with a large body and breaks below the support area, the next bearish target for gold could be around 1.2790. Such scenarios may provide better selling opportunities in the coming days, which were not present earlier in the week. Price declines typically occur during the American session, affecting the success of earlier buying scenarios, as this is when the declines usually happen. Hopefully, the third target near 1.2730 will be achieved soon.
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