XAU/USD: where to next?
XAU/USD has moved this week in line with its short-term uptrend and the overall long-term uptrend reaching $1 865.
GOLD: correction time
The advance of gold (XAU/USD) this week has been too rapid. The precious metal got overbought. Both on the W1 and H4, the price highs weren’t confirmed by the highs of the Awesome Oscillator. In other words, there was bearish divergence. On the D1, a spike was formed and XAU/USD turned around to the downside and closed at the previous day low thus engulfing Tuesday’s and Monday’s candlesticks. It seems that there’s an interim top and that the correction might take the price further down.
A decline below 1,540 (50-period MA on H4) will open the way down to 1,528 (50% Fibonacci of the November-January advance). The next support will be at 1,509. The major resistance is located at 1,557. The return to this area may once again attract sellers. Only the advance above this point will let the price rise back to 1,577.
Trade idea:
SELL 1,538; TP1 1,528; TP2 1,510; SL 1,543
Elizabeth Belugina
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How to trade XAU/USD?
It’s simply the question of time before gold price gets to the higher levels…
XAU/USD at the new highs
XAU/USD rose to the highest levels since 2012. The advance has become stretched and the price may try to correct down.
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