XAUUSD Price, Analysis, and Trend Today

On the daily Chart, the price is currently at 1778.475. The price has managed to break the ascending channel. As per the current status, a bearish divergence pattern is forming in the H4, H3, and H1 charts.

See XAUSUD Analysis and Trend Today

What is a bearish divergence pattern?

Bearish divergence is a clear downtrend pattern when the price reaches a new high. However, it is crucial to note whether the oscillator reached or refused to touch the new peak. A bearish divergence pattern indicates that bulls are losing their power and grip on the market. As evident on the daily and 4-Hour Chart, prices in XAUSD are only rising due to inertia. In the next few days, bears are powered to take control and dump.

How do you check and confirm a bearish divergence pattern?

On the XAUUSD chart, it is easy to confirm the hidden bearish divergence pattern. The only requirement is to check the price on whether it is showcasing lower tops. Alternatively, it is important to confirm whether it is giving higher tops through the oscillator indicator. Additionally, possible and evident price reversals.

How accurate is the bearish divergence pattern?

The best option is the Monthly RSI Divergence which has a 100% Accuracy Rate. The best thing about divergence is that it shows when a trend is weakening. This means that divergence signals show either a positive or negative move in the price. As evident in the Daily and 4-Hour Chart, a negative bearish divergence means XAUUSD prices may begin dipping soon.

 

Under such circumstances, Analyticdave holds a bearish bias on XAUUSD. However, in the next few hours, there is a high chance that a false bullish pressure might be seen. Consequently, XAUUSD traders need to focus on the sell zone as indicated in the H4 Chart below. It is important to highlight that no news will push XAUUSD to a pure bullish trend.

Once the price returns to the sell zone, the first take profit could be placed around the first support zone of 1771.76. The second take profit is strategically available on or before the 2^nd Support Zone around 1752.94. It is important to highlight that the 1752 zone aligns with the 38.2% Fibonacci retracement.