XAUUSD is approaching our first resistance at 1325.87 (horizontal swing high resistance, 100% Fibonacci extension, 38.2% Fibonacci retracement) which coincides with our short term descending resistance line. A strong reaction might occur below this level, pushing price down to our major support at 1302.72 (horizontal swing low support, 161.8% Fibonacci retracement). A breakout below our intermediate support at 1317.34 (horizontal overlap support, 38.2% Fibonacci retracement) might provide the bearish acceleration to our major support target.
Stochastic (89,5,3) is also approaching our major resistance and a reaction off this level might be a good precursor for a potential drop in price.
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Stochastic (89,5,3) is also approaching our major resistance and a reaction off this level might be a good precursor for a potential drop in price.
Trading CFDs on margin carries high risk.
Losses can exceed the initial investment so please ensure you fully understand the risks.
This analysis is provided as general market commentary and does not constitute investment advice. Past performance is not indicative of future results