XAUUSD: Sell the Spikes, Target the Supports

[m_c_jacob]

In yesterday’s analysis, I mentioned that while XAUUSD still looks bullish on higher timeframes, the market is flashing increasing signs of exhaustion and a potential reversal.

The price action confirmed that view: after spiking above 3700 on the Fed’s decision — which filled my sell orders — gold turned sharply lower, carving out a local bottom around 3645.

As expected, the market rebounded after this aggressive sell-off, and at the moment, price is holding around 3655. This is an interesting area, since last week’s resistance has now flipped into temporary support.

Looking ahead, I don’t think the correction of the massive 4,000-pip rally in less than a month is done. Another leg lower could easily unfold.

Key downside levels for bears:

3620 – first stop if sellers press further

3570 zone – a stronger support, previously highlighted, and coinciding with the 38% Fibonacci retracement of the latest rally

Trading Plan: I remain in “sell the spikes” mode, with targets set around these support zones. The market has offered quick moves lately, so discipline and patience remain key.

In yesterday’s analysis, I mentioned that while XAUUSD still looks bullish on higher timeframes, the market is flashing increasing signs of exhaustion and a potential reversal.

The price action confirmed that view: after spiking above 3700 on the Fed’s decision — which filled my sell orders — gold turned sharply lower, carving out a local bottom around 3645.

As expected, the market rebounded after this aggressive sell-off, and at the moment, price is holding around 3655. This is an interesting area, since last week’s resistance has now flipped into temporary support.

Looking ahead, I don’t think the correction of the massive 4,000-pip rally in less than a week is done. Another leg lower could easily unfold.

Key downside levels for bears:

3620 – first stop if sellers press further

3570 zone – a stronger support, previously highlighted, and coinciding with the 38% Fibonacci retracement of the latest rally

Trading Plan: I remain in “sell the spikes” mode, with targets set around these support zones. The market has offered quick moves lately, so discipline and patience remain key.!

[m_c_jacob]

https://www.tradingview.com/x/bb6f4jQZ/