Technical analytics

XAUUSD market technical outlook

XAUUSD

Daily chart:

There is quite an arguable situation. On one hand the structure has “double high” (a reversal pattern). On the other hand - uptrend remains steady.

It seems that all will be defined by market reaction on 1764.00-1765.00, where we have the recent broken high. In case of upward bounce uptrend will b extended and gold most likely will go to break the recent high (blue trajectory). And if 1764.00 proves broken to the downside, correction might go much deeper in direction of the pivot 1743.45-1746.86 (black arrow).

H1-chart:

Bulls have apparent positional advantage within local structure. The point is that market got full-scale downswing, but didn’t perform upswing afterwards. Even in cases of reversal of the trend the structure as a rule gets fully formed upswing, therefore in this case we can also expect an attempt to break the recent high after testing of the pivot-zone 1765.84-1767.18.

Conclusions:

Testing of 1765.84-1767.18 and then growth in direction 1775.50-1780.00.

Trading recommendations:

  1. Longs from 1765.84-1767.18 to 1775.50-1780.00.

  2. Seeking probable sell signals at 1780.00.

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