XAU/USD: where to next?
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XAU/USD has moved this week in line with its short-term uptrend and the overall long-term uptrend reaching $1 865. It’s only natural that the price made a stop: market players decided to take profit, so gold returned to $1 850. The precious metal is obviously overbought in the short-term, so there are reasons to expect at least a moderate correction to $1 838.50 (38.2% Fibonacci retracement of the resent leg up). The further support levels are at $1 830 and $1 821.50. We’ll consider buying on the dips if XAU/USD moves to these levels.
Fundamentally, we expect gold to remain in demand. If XAU/USD rises above $1 865, $10 dollars will be a reasonable profit target.
Trade ideas for XAU/USD
BUY 1 860; TP1 1 865; TP2 1 875; SL 1 858
SELL 1 847; TP 1 839; SL 1 850
