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Gold slips lower after completing a correction pattern
The analysis points to 4,385.35 as the key pivot, with the bearish outlook staying intact while prices remain below it.
Gold is seen turning lower after completing a correction structure, according to technical analysis published by Action Forex using Elliott Wave charts for the XAUUSD gold market.
The article says gold is forming a recovery after reaching a 4,385.35 peak, but it may still need to develop another short term high to finish the correction before a subsequent drop begins.
Action Forex highlights that the 4,385.35 level is the key pivot for the directional call, and it argues that as long as gold stays below that resistance area, downside pressure is expected to persist.
The analysis also notes that the wave (B) recovery was completed at the 4,201 peak, and it calls a break below the wave (B) low as additional confirmation that the next leg lower has started.
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