FX.co ★ Gold upside ends, more declines expected

XAU/USD climbed as much as 1,937 today where it has found resistance again. Now, it has turned to the downside again and is trading at 1,919 at the time of writing. The bias remains bearish in the short term despite temporary rebounds.

Fundamentally, the yellow metal turned to the downside as the US Flash Services PMI came in at 54.1 points above 53.9 points expected.

XAU/USD Temporary Rebound!

As you can see on the H1 chart, XAU/USD dropped again after retesting the 1,935, S1 (1,931), and the median line (ml). These represented upside obstacles, so the false breakout announced strong sellers and a new sell-off.

The 1,910 former low represents a downside target and obstacle. It remains to see how it reacts after reaching this static support.

XAU/USD Forecast!

A bearish closure below 1,910 activates more declines and is seen as a new selling signal.