The bias is bullish while the price remains above $1450. Buying seems to be reasonable near $1500 physiological level.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
This analysis was done using MetaTrader 4.
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Trade Idea Details:
XAU/USD symbol
Trend: Bullish
Key support levels: 1465, 1450
Key resistance levels:1667, 1700
Price Action:
On a weekly chart XAU/USD has been trending within the ascending channel. However, on the 11.08.2019 price broke above the channel suggesting further price increase in the long term. Gold has managed to reach $1700 psychological resistance after which a sharp correction down followed. It has resulted in a 14.8% price drop during a period of just 6 days.
The decline has been stopped by the upper trendline of the ascending channel, where the price failed to close below. Along with the channel trendline, 50 Exponential Moving Average has been rejected also.
On the Daily chart, the price has reached a key support area near $1450, which now could be an area of demand. Currently, corrective move down could provide a very attractive buying opportunity in the short to medium term.
XAUUSD Weekly Chart
XAUUSD Daily Chart
XAUUSD M15 Chart
Potential Trade Idea: In the past few hours price has gone up significantly, which is not that attractive for buying. Although on the lower timeframe, specifically on the 15m chart, it seems that there are several levels to watch for rejection and a potential buy signal. The first would be $1500, the second is 1494, the third is 1486 and the fourth and final is 1477. If the price gets below 1477, XAU/USD should no longer be considered for buying.
- Potential StopLoss at 1450
- Potential TakeProfit at 1667
-Happy Trading!
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