Technical price outlook for gold: XAU / USD short-term trade levels
Purposed prices by the beginning of the month, more than 1% had accumulated, and while the broader outlook remains constructive, the immediate rally could be vulnerable as the focus shifts to several weeks if we go to the big US risk tomorrow. Need targets and cancellation levels have been updated XAU /USD technical tables in the payroll of agricultural holdings. Overview my last Strategy webinar for a thorough breakdown of this gold technical configuration and more.
Gold price chart – XAU / USD Daily
Technical outlook: Last month’s Gold Price outlook we noted that XAU /USD, “The rally here may be vulnerable to joining technical resistance,” as assessed in the upper parallels at the end of April. Resistance was kept high in 2012 1795 this threshold now stands for weekly / monthly opening area peaks. Slightly higher rests in March with a 100% extension at 1804 – both levels of interest in the possible reversal of the IF are achieved. Daily support stable 1764/67 Fibonacci accession with a break below tork the support needed to recommend a higher return is ongoing.
Gold price chart – XAU / USD 120min
Notes: A closer look Gold the price shows that XAU / USD carves a well-defined opening range on a weekly basis 1763-1795, a zone that has regulated gold prices since 16 Aprilth – We’re on guard. Violation / closure above 1804 would need fuel at the next stage higher in a scenario that would reveal the following rexistence goals 1818 and February open / 61.8% retracement at 1848/51. A lower pause would jeopardize a larger correction 1752 in the near future bullish the repeal now rises to the highest / lowest parallel in March at ~1745– area of interest in case of possible negative depletion, if reached.
Bottom line: Gold prices will continue to trade within a well-defined range that will be resisted by the US Non-farm wages tomorrow. From a trade perspective, the focus is on 1763-1804. Level breakthrough more vulnerable to a wider rally while below the upper limit – look for possible exhaustion tomorrow if a wider setback is likely to offer better opportunities closer to the trend support. Ultimately, the proximity above the higher parallel is needed to heat the next right leg – have fun at the end of the week. 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 +4.33 (81.24% of traders are long) – usually bearreading
- There are long positions0.77% higher than yesterday and 6.67% lower than last week
- Short positions are8.69% lower than yesterday and 2.14% higher than last week
- We usually see the contradictory situation of the crowd, and the fact that traders are net tall indicates a continuing fall in the price of gold. Traders are online longer than yesterday, but less online than last week. The combination of current positioning and recent changes gives us a more mixed gold trade bias a feeling position.
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– Written Michael Boutros, DailyFX Technical Strategist
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