XAUUSD Technical Analysis

On the daily chart below, we can see that after tapping into the record high at 2076, Gold started to fall as better than expected economic data lifted treasury yields and boosted the US Dollar. The price yesterday broke below a key trendline which is the base of an expanding wedge pattern. We should now see the price falling towards the 1930 level where we can also find the 50% Fibonacci retracement level and the major trendline. That support zone is expected to be really strong, and the buyers are likely to pile in there with defined risk below the trendline. The sellers, on the other hand, will want to see the price breaking below the support zone before piling in more aggressively and extend the selloff towards the 1800 level. XAUUSD technical analysis On the 4 hour chart below, we can see the breakout that happened yesterday after the better than expected US Retail Sales data. The sellers are now clearly in control and barring any negative news like a big miss in Jobless Claims tomorrow or Fed Chair Powell being dovish on Friday, gold should continue to fall towards the 1930 level. On the 1 hour chart below, we can see more closely the recent price action. The sellers should keep on piling in at the break of the swing low at 1985. If the breakout fails, the likely pullback should run towards the 2000 resistance where we can also find the 38.2% Fibonacci retracement level. The sellers will be waiting there with defined risk just above the resistance zone and the 1930 level as target. The buyers, on the other hand, will need a break above the trendline to regain some control and target the 2076 high. This article was written by ForexLive at www.forexlive.com.
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