The XAU/USD chart reveals a surge in market volatility, with the Average True Range reaching its highest level in weeks. This uptick is driven by the global market instability — now including a worsening conflict between India and Pakistan — which continue to fuel trading activity.
Technical Outlook: Gold Under Pressure Amid Uncertainty
A shift in sentiment was observed on 23rd April, following a peak in gold prices around $3,500. Current price action shows bearish pressure above $3,400, which earlier triggered a reversal at peak B. The peak B falls short of the high at point A. This pattern points to the formation of a descending channel, suggesting sellers are trying to contain the price within this range.
However, bulls recently pushed the price above the $3,333 level (marked by a blue arrow), potentially forming a bullish “cup and handle” pattern. If this plays out, the May rally could see an attempt to break above peak B.
Volatility is expected to remain elevated, particularly with the US Federal Reserve’s interest rate decision scheduled for 21:00 GMT+3 today, followed by Fed Chair Jerome Powell’s press conference at 21:30.
FXOpen offers spreads from 0.0 pips and commissions from $1.50 per lot. Enjoy trading on MT4, MT5, TickTrader or TradingView trading platforms!
The FXOpen App is a dedicated mobile application designed to give traders full control of their accounts anytime, anywhere.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Descubra mais sobre
Assine para receber nossas notícias mais recentes por e-mail.