Gold has declined over the last six trading days and trades in its weak channel between the lower red and blue bands. Its stochastic has also turned considerably bearish and is under the 20 levels. The longer it maintains this position, the greater the downside pressure on the precious metal.
The hourly chart looks to have charted an ascending wedge. This pattern is of the bearish continuation convention. If the daily momentum continues current trajectories, we expect the XAUUSD to complete the wedge with a downside break.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.