Technical analytics

XAUUSD market technical outlook

XAUUSD

Daily chart:

Structure of gold got another lower high, that indicates either a continuation of market consolidation in the range of last swing 91385.15-1426.89, watch the red trajectory) or probable full downward reversal (for this bears have to break the closest low at 1385.15, watch the black arrow).

Both options look viable, therefore we need to track reaction on the 1385.15 level.

H1-chart:

Local structure has two stiff support zones (1400.89 and 1389.62-1390.54) and resistance at the level of last high (1426.77). Market is bullish, therefore we can see growth from any of these supports in direction 1426.77. 

Conclusions:

Main scenario: Touch of the 1400.89 level and following growth in direction 1426.77.

Alternative scenario: Decline to the 1389.62-1390.54 zone with upward bounce and start of new upswing with the target at 1426.77 region (in medium term).

Trading recommendations:

Longs from 1400.89 and 1389.62 to 1426.77.

 

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