XAUUSD is approaching our first resistance at 1192.86 (horizontal overlap resistance, 38.2%Fibonacci retracement, 100% Fibonacci extension) and a strong drop might occur below this levelpushing price down to our major support at 1185.48 (horizontal overlap support).Ichimoku cloud is also showing signs of bearish pressure in line with our bearish bias. RSI (34) is alsofacing bearish pressure and we might see a corresponding drop in price.Trading CFDs on margin carries high risk.Losses can exceed the initial investment so please ensure you fully understand the risks.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.