Technical analytics

XAUUSD market technical outlook

XAUUSD

Daily chart:

Upward dynamics of the market is in progress, however the structure doesn’t have a full-scale corrective downswing and this might cause the lack of fuel for bulls. Thus the main expectation so far is flat or consolidation, where a correction will be formed.

Of course shorts are out of the question.

H1-chart:

Local structure has signs of downward reversal. To keep such structure bears have to guard resistance 1658.00 (black trajectory).

But we also can’t rule out a break and further growth on such a strong mid-term bull market (red arrow). 

 

Conclusions:

Main scenario: Touch of 1658.00 and then decline in direction 1632.65.

Alternative scenario: Break above 1658.00 and further growth in direction 1688.00.

Trading recommendations:

  1. Shorts from 1658.00 to 1632.65.

  2. Longs to 1688.00 (in case of break of resistance 1658.00).