Technical price outlook for gold: XAU / USD short-term trade levels
Purposed prices increased at a lower level of XAU / March / year over 12.6%USD trying to resist a smooth uptrend today. At the same time, the collapse of cryptocurrencies has sparked a wave of free-selling Bitcoin in early US trading. The weekly opening interval is set in gold and we are looking for a breakthrough for guidance, where the broader focus is higher than the opening of the week. Need targets and cancellation levels have been updated XAU /USD and BTC / USD technical charts. 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 May breakthrough was near as the XAU / USD carved a,in a well-defined week opening area between 1763 and 1795, the zone that has regulated gold prices since April 16 – we are on guard.“The break-up / closure of the upper part of the April range higher than the next day has so far yielded more than 6.3% of the rally in the month, after examining the resistance of the accession channel 1876– the level defined by the 100% extension of the March advance, the 50% reversal of the August fall and the highest level at the end of January. Note that the daily momentum is now exploring the 70 threshold as the price approaches resistance – the trigger is set, watch the closure.
Gold price chart – XAU / USD 120min
Notes: A closer look Gold the price promotion shows XAU / USD carving per week opening area slightly below the upper parallel / obstacle 1876. Violation of the top keeps the following attention here rexistence targets open each year / 78.6% retrospectively 1898 guaranteed by the closing of the annual high day / the highest in 2011 / 61.8% Fibonacci withdrawal at 1918/23– both offers of interest in case of possible upper exhaustion IF reached. Initial support rests at 1851/54 with the repeal of the short-term bullish, the week is now open at 1843. Ultimately, the lowest level on Friday, near 1819, is needed to restore the short side bias.
Bottom line: The gold price rally is being studied here in 1876, and we are looking for a possible turnaround. From a trade point of view, there is a good zone for raising protection stops – losses should be limited to weekly openness IF prices will rise higher in this section. Keep in mind that the technical importance of this threshold can further accelerate inflation here – 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.
Review Michael’s full trading strategy for a breakdown Fundamentals of the Technical Analysis Series Bluilding a Tirradiation Strategy
Gold Trader’s Sentiment – XAU / USD Price Chart
- Summary IG customer mood indicates that traders are net long Gold – the ratio is +2.6 (72.20% of traders are long) – usually bearreading
- There are long positions1.50% lower than yesterday and 0.15% lower than last week
- Short positions are13.07% higher than yesterday and 27.63% 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.
Bitcoin price chart – BTC / USD Daily
Notes: Bitcoin broke critical support today with critical support closing January peak / 61.8% year-on-year retracement 40667-41929 with the move, the 200-day moving average was taken for the first time since April 2020 and the BTC / USD’s highest record overnight range (ATR) was marked. Sales were suspended at the start of U.S. trading during the 1.618% extension / closing of the lowest day in 2021 30655-32005 – this support zone remains critical. You will probably see some carbonate here in the coming days, the fallen repeal of which has now been brought down. median line / 40667–41930. Breaking the lower form could risk lower annual testing / 61.8% return on 2020 progress 27169/734.
Active technical settings
– Written Michael Boutros, DailyFX Technical Strategist
Watch Michael Twitter @ MBForex