Technical analytics

XAUUSD market technical outlook

XAUUSD
Daily chart:

The structure remains without downswing, therefore gold may keep a tendency to decline of the quotes. Key resistance zone is 1961.69-1973.32. It’s recommended to short from this zone reckoning on reversal of the market in direction of the closest local low (1902.42-1910.88).

 

H1-chart:

Local structure so far keeps bullish status, but already has signs of buyers’ weakening: we got several false upward breaks of the inside bar at the tip of upswing. Besides that bulls were unable to renew the high and it’s a required condition for uptrend extension. Thus bears need to pass the support 1944.00-1946.22 to confirm a reversal. In this case the room for further drop will be free and the next target will be at 1932.64.


Conclusions:

Main scenario: Decline to 1932.64.

Alternative scenario: Extension of consolidation in the 1944.00-1955.78 range.

Trading recommendations:

Shorts to 1944.00-1946.22 and 1932.64.

 

 

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