XAU/USD – Double Top Formation on Monthly Chart

XAU/USD turned lower from the $2,000 psychological area and is now trading closer to the $1,700 levels. As you can see, $1,700 lines up with the “neckline” of the Double Top pattern on the monthly time frame. A clear break below $1,700 opens XAU/USD to a move down to $1,550 if not the $1,400 resistance level seen in 2014 to 2018. If XAU/USD is still above the $1,700 neckline by the time the markets have priced in the rest of the Fed’s interest rate increases, then we could see XAU bounce back to $1,800 or $2,000. On Monthly chart RSI is moved below 50 level also XAU/USD is resist by 50 days EMA.

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk.

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