FX.co ★ Gold: bearish pattern activated

The price of gold crashed after the US economic data and now is trading at 1,947 right above 1,939 today's low. You already know from my analyses that the downside pressure remains high after yesterday's false breakout through 1,984.

Earlier today, the US Prelim GDP, Unemployment Claims, and Prelim GDP price Index came in better than expected. Later, the Pending Home Sales is expected to report a 1.0% growth after the 5.2% drop in the previous reporting period.

XAU/USD Punished By The US Data!

As you can see on the H1 chart, the rate dropped and closed below 1,952, the median line (ml), and under the S1 (1,945). I've told you in my previous analysis that this scenario should bring a larger drop and new selling opportunities.

Now, it has rebounded a little, trying to test and retest the broken downside obstacles before going down.

XAU/USD Forecast!

Coming back below the S1 (1,945) and making a new lower low, closing below today's low of 1,939 is seen as a new selling signal with a potential target at the S2 (1,913).