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XAU/USD Forecast and Technical Analysis

XAU/USD forecast and technical analysis are described in the article with weekly, daily, and 1 hour time frames.

For generations, gold has been regarded as a very precious commodity, All commodities have recently touched all time high after Russia-Ukraine crisis.

Table of Contents

XAU/USD is commonly used pair for gold trading apart from using this pair traders also use Gold futures for trading.

[Use the real-time XAU/USD chart to improve your technical analysis of live gold prices.]

As a reliable safe haven asset, gold is typically priced in US dollars per ounce. With an average daily trading volume of 145.5 billion US dollars as of December 2019, gold is a highly volatile and popular asset for traders to trade. We will examine the gold weekend analysis in this technical blog using the price action approach and look for certain future events that can affect its intrinsic value.

XAU/USD Live Chart

xauusd resistance

Using the weekly time frame, we can see that after testing the previous high, i.e., resistance level 2050, on March 20,2022, gold has declined by 20%. Another thing to keep in mind is that an engulfing pattern, which suggests a reversal movement, developed close to the resistance level. Since there were more bears than bulls, the price ended the week near the 1707 level, which is a crucial support level.

XAU/USD Forecast For Swing Trading:

Looking back to August 2018, gold began its uptrend by establishing higher highs and lower lows. After spiking near the 2070 price level in August 2020, the market continued to fall, with the most recent low forming near the 1690 level. A few weeks later, the wicks have tested at this level twice. The inability of the price to close below this support level indicates a surplus of buyers at this level.

xauusd forecast swing trading

The price reversed with bearish momentum again after forming a reversal candlestick pattern close to a resistance level.

Price has since again approached and tested a recent support level.

If this support level is broken, the next level to watch is near 1490. The breakout of support level 1690 would confirm the double top structure, and the bearish trend would appear to continue. Thereafter, the most recent significant support level would be the recent higher low.

However, because the market structure is optimistic, it’s best to remain cautious. Taking a short position in an up-trending market on a higher timeframe may be akin to catching a falling knife. More confirmation is required before making a decision to sell short.

XAU/USD Forecast -Daily Candlestick Chart

xauusd forecast

In the daily timeframe, the market has been making a series of lower highs and lower lows after testing a significant resistance level.

It is forming a spinning top at the bottom of the most recent support level.

Could it be a precursor to a continuation or reversal?

We’ll monitor the following daily period candle to close either above or below it for better confirmation.

Because the overall market structure is bullish, a bullish reversal sign could indicate bearish exhaustion.

(Pay heed to the sentiment of what the bigger timeframe is trying to tell you. Big timeframes have high volume; if the market structure shows a bullish structure in a higher timeframe, it should be taken into account.)

Intraday XAU/USD Forecast

Price failed to break below the support zone, causing wicks to form and the market to move indecisively. Now that the price has remained range-bound, only a break on either side will reveal whether the trend will continue or reverse.

xauusd 1 hour chart

A continuation of bearish movement would be possible, if the price breaks and closes below the support zone.

A break above the 1 hour resistance level would indicate a bullish reversal.

Live Gold Technical Analysis:

Author is Senior Technical Analyst
At Bulls Arena Trading
info@bullsarenatrading
New Delhi
India

BULLS ARENA TRADING

Author

  • Yash Nagarkoti

    Yash brings extensive trading knowledge and expertise in technical analysis. Specializing in short-term to medium-term trading, his research spans the Forex market to global stock markets. Since 2016, Yash has been a member of the bulls arena trading Technical Analysis Research Team.

Candlestick Patterns Trading Course

This Post Has 2 Comments

  1. Gal Jerman

    Top ,.. top top … post! Keep the good work on !

  2. Mark

    Thanks for your blog, nice to read. Do not stop.

Comments are closed.