Gold finally broke the key 1780 support yesterday. The market opened near 1785 at the Asian session. The early buying has begun once the price broke the resistance line(1). It reached the day-high 1808 at the US session, briefly crossed the resistance at 1800-03(2) in the 1-hour chart. The momentum has shifted once the Fed. Chair Testimony began. The price has slid thereafter. The day-low landed at 1768 with the day ending at 1774.

The S-T trend in the 1-hour chart has now been shifted from a horizontal range-bound to a downward trend. But one thing that needs to notice in yesterday’s breakout is that the selling triggered by the break of 1780 seems relatively weak. TAs a result, the follow-through selling in the next 48 hours may not be too steep and strong. Instead of a sharp decline, expect the price to step down in a range by range pattern. And the range is now shifted from 1780-810 to 1770-1803(4), with a newly formed S-T trendline(3) pressuring it down.

Combining with the previous breakout of the trendline(5), the pattern on the daily chart has now shifted to a downtrend after gold breached the support at 1780(6) yesterday. 1760-70 should be the next support level to catch the current fall.

S-T Resistances:

1800-03

1795

1790

Market price: 1789

S-T Supports:

1786

1782-80

1774

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