GOLD → Strong consolidation. What could happen?

is consolidating in the range of 2926 - 2890. The market is generally bullish, but there is a high probability of a short / long-squeeze before the strong news, which will be on Wednesday.

Markets are waiting for data on inflation and employment in the U.S., which may affect the Fed's decisions. Despite a weaker dollar and expectations of monetary easing, Fed chief Jerome Powell remains cautious.
Gold demand is supported by China, which is increasing purchases, as well as growing fears of stagflation in the US. However, traders are keeping an eye on new economic data and the impact of Chinese tariffs on US goods
Technically, the focus is on 2926 - 2890. The ideal scenario in a bull market would be a false break of the support at 2893 - 2890 and further growth due to the change of imbalance in the market after liquidation and liquidity capture. But, based on the current situation (strong range) there is a high probability of short-squeeze or long-squeeze.

Resistance levels: 2926, 2942
Support levels: 2893, 2890

At the moment the emphasis is on 2926. Formation of pre-breakout consolidation, further breakout and price consolidation above the resistance can provoke a bullish impulse.
But the difficulty is that the support has not been tested yet. If the price approaches 2926 very quickly, a false breakout could be made and in that case the price could go down to 2890 to retest the liquidity zone before storming 2926 for further upside.

Regards R. Linda!

Trade active

The price has entered the liquidity zone (the area below 2895)
We did not go down, buyers were able to keep the price from a strong fall.
After capturing liquidity, the price returns behind 2895, forming a false breakdown in the format of a local reversal pattern “double bottom”
If the bulls hold the defense above 2895-2900, the gold may continue to grow

RLinda

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