It's pretty evident that a one-minute candle which caused the fake breakout on 20th of July is not achieving the speculated effect.
Just seconds after this price action shock, the gold jumped from 1070$ back to 1110$.
Obviously many knew that gold is not going to go much bellow 1130 and thus saw this sudden drop as a good opportunity to buy.
Now the price action did slide down in a steady downtrend from that moment, but not as much as many would expect after such a drastic break of important support level. Today this downtrend is falling apart with price action breaking the resistance line and forming a new upward hagopian (pink line).
However the tradingview XAU/USD chart doesn't show the whole picture so here is how the real candle pattern looks like:
charts.mql5.com/8/42...apital-markets-2.png
I had to draw a missing candle onto tradingview chart.
In addition to all the technical signs, we also had a very USD-positive Durable Goods news release, yet it didn't cause XAU/USD to break the hagopian.
Just seconds after this price action shock, the gold jumped from 1070$ back to 1110$.
Obviously many knew that gold is not going to go much bellow 1130 and thus saw this sudden drop as a good opportunity to buy.
Now the price action did slide down in a steady downtrend from that moment, but not as much as many would expect after such a drastic break of important support level. Today this downtrend is falling apart with price action breaking the resistance line and forming a new upward hagopian (pink line).
However the tradingview XAU/USD chart doesn't show the whole picture so here is how the real candle pattern looks like:
charts.mql5.com/8/42...apital-markets-2.png
I had to draw a missing candle onto tradingview chart.
In addition to all the technical signs, we also had a very USD-positive Durable Goods news release, yet it didn't cause XAU/USD to break the hagopian.