GOLD continue to move as part of the correction and the formation of the “Head and Shoulders” reversal pattern. At the time of the publication of the forecast, the price of GOLD is 1894 Dollars per Troy Oz. Moving averages indicate a short-term bearish trend. Prices broke the area between the signal lines downward, which indicates pressure from the sellers of the asset and a potential continuation of the fall from the current levels. At the moment, we should expect an attempt to develop growth and test the resistance level near the area of 1920. Where can we expect a rebound and the continuation of the fall in the price of GOLD with a target below the level of 1790.
XAU/USD Forecast and GOLD analysis October 16, 2020
An additional signal in favor of falling XAU/USD quotes will be a test of the resistance line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the descending channel. Cancellation of the option of falling GOLD prices on October 16, 2020 will be a strong growth and a breakdown of the level of 1945. This will indicate a breakdown of the resistance area and continued growth to the area above the level of 1985. Expect to accelerate the fall in XAU/USD quotes with the breakdown of the support area and closing of the price below the level of 1875 , such a fall will indicate the completion of the formation of the “Head and Shoulders” adjustable model and the beginning of the development of this model.
XAU/USD Forecast and GOLD analysis October 16, 2020 implies an attempt to test the resistance area near the level of 1920. Further, the continuation of the fall in quotations with a target below the level of 1790. Cancellation of the option of falling GOLD prices will be made by a strong growth and a breakdown of the level of 1945. This will indicate on the breakdown of the resistance area. In this case, we should expect a continuation of the rise in GOLD with a potential target above the level of 1985.
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