Gold XAU/USD Chart Analysis
Gold is moving in a downtrend by forming lower highs and lower lows in the daily time frame chart.
Now, Gold has reached the lower low zone of the downtrend line.
Let’s wait for the confirmation of reversal or breakout.
Gold has declined below 1800$ mark as Vaccine optimism and Trade war may end as per the expectations from the new Biden administration.
If the stimulus program passed in Biden administration then Gold may reverse to the positive tone.
What happens If gold price continues to fall further?
In the 4-hour chart, Gold has broken the bottom of the descending Triangle.
As per the descending Triangle breakout strategy, the maximum target after the breakout will be the first swing of the triangle.
We have highlighted the first swing inside the descending Triangle, and duplicated the first swing distance and applied it to the breakout area to see the maximum target market have chances to move.
The first swing length (pips) = Target length.
Gold can fall maximum until 1700 price level as per the descending triangle breakout strategy.
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