XAUUSD: Deceiptful 1D Golden Cross on All Time High territory?

Gold entered the All Time High territory on heated overbought technicals on the 1D timeframe (RSI = 73.661, MACD = 29.580, ADX = 38.098) so far coming only a fraction away from hitting the May 4th 2023 ATH. Practically this is a Resistance line that formed long term tops and rejected the price another two times, on March 8th 2022 and August 7th 2020. The least immediate decline has been -6.15% (May 4th 2023) then -8.62% (March 8th 2022) and the maximum of -10.35% (August 7th 2020). Keep in mind that all three selloffs hit (or nearly hit) the 1D MA50.

This time however, the market faces a significantly altered dynamic as along with the ATH test today, it formed a 1D Golden Cross. Every time since The August 7th 2020 High, Gold formed a 1D Golden Cross, a rally always followed. So far we've had four such formations into rallies.

If the highest ever Golden Cross can be enough to invalidate the ATH and close a week over it, then we can expect the psychological level of 2,100 to be tested immediatelly. If not, then a minimum of -6.15% decline will send Gold to 1,955 and most likely by that time under the 1D MA50.

See how our prior idea has worked:


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