Technical price outlook for gold: XAU / USD short-term trade levels
Purposed prices migrated to XAU with more than 3.7% of June lowUSD based on broader recovery of key technical support. Progress is now exploring initial barriers to resistance, and while immediate recovery may be vulnerable, the technical stance may suggest that a larger correction may still have upside potential. Need targets and cancellation levels have been updated XAU /USD technical tables. Overview my last Strategy webinar for a thorough breakdown of this gold technical configuration and more.
Gold price chart – XAU / USD Daily
Technical outlook: In my last Gold Price outlook we noted that the XAU / USD was:fell into a critical uptrend and focus on the response outside this threshold. From a trade point of view, it is a good zone to reduce short exposure / lower protective layerps. “The focus was on the support zone 1764–69– an area defined as 50%, 61.8% of progress in 2020 Fibonacci Prolongation of the decline in 2020 and withdrawal of the 61.8% rally in March. At the end of June, Gold briefly recorded an intraday low of 1,750, before the resistance to a six-day consecutive rally test rose this week during a 38.2% rebound in June. 1814.
The decline in the June highs appears to be a five-wave pattern, suggesting that a corrective stance on this gold recovery may be appropriate. With that in mind, the key is every day ssupport now expanding 1764/76– an area that now includes a monthly openness, a 61.8% return from the latest progress and a sliding parallel that reaches its lowest level of the year. Violation of the top above it rexistence zone would satisfy the corrective bounce and may provide a more favorable level of blurring event. Ultimately, the violation / closure above 1853 would be needed to mark the continuation of a wider upward trend.
Gold price chart – XAU / USD 120min
Notes: A closer look Gold price behavior shows that XAU / USD broke the short-term resistance of the downward trend to the newly identified uptrend last week tork formation of lower. The price reversed today in the construction of the separation just above the top parallel, with the withdrawal now testing initial support at the highest level of the median / 2012 1795– look for a short-term turnaround with a break here, risking a bigger rebound towards the lowest level of the week’s opening range 1784 and 1776– in the event of possible negative depletion of both zones of interest, if this has been achieved. Near the top 1814 would reveal a top parallel / 50% retracement 1833.
Bottom line: Gold’s recovery, supported by a critical upward trend, is now testing initial resistance barriers. From a trade perspective, look for negative exhaustion before 1776 IF the interpretation of the correction is correct if the violation of the heights directs the focus towards the upper parallels. Check out my latest review Golden Week price outlook to take a closer look at the level of longer-term XAU / USD technical trading.
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Gold Trader’s Sentiment – XAU / USD Price Chart
- Summary IG customer mood indicates that traders are net long Gold – the ratio is +5.41 (84.39% of traders are long) – usually bearreading
- There are long positions4.48% lower than yesterday and 4.44% lower than last week
- Short positions are2.89% higher than yesterday and 3.56% higher than last week
- We usually view the contradictory situation of the crowd, and the fact that traders are net long indicates a continuing fall in the price of gold. Merchants are less than last week compared to last week. Recent changes feeling warn that the current trend in the price of gold may soon turn higher, despite the fact that traders will remain net long.
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– Written Michael Boutros, DailyFX Technical Strategist
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