XAUUSD H4: Bearish outlook seen, further downside below 1850.50

7 Mar 2023

On the H4 timeframe, prices have broken below a key resistance zone at 1850.50, which is in line with the 61.8% Fibonacci extension. A pullback to this zone could present the opportunity to ride the drop to the support zone at 1831.20, which coincides with the 50% Fibonacci retracement. ADX is indicating a strong trend, while MACD is showing bearish momentum, supporting our bearish bias.