Gold has fallen from $1750 to $1695 in the last week, and $35 since the beginning of December which is quite aggressive. However over the last few days, the pair formed a large pin bar that failed, but communicated buyers were looking to scoop up the precious metal on dips. Just today, it formed another pin bar, which is also doubling as an inside bar and SDB pattern.
Since then it has quietly bounced off the lows, trying to clear resistance at $1698 and $1705. Should it do this, then the bulls will likely make some more headway to the upside with $1720 being the next resistance where bears will likely challenge. Bulls can look for corrective pullbacks into $1695, but should this break, the bears could likely take it down to $1673 before finding new buyers.
(click to enlarge)Click to enlarge
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