XAUUSD bounce from 1680 - What to expect next?
As told in my previous ideas regarding Gold, that we are not sure about the direction of trend for XAUUSD, unless two levels 1680 and 1775 are broken. Oh well, we have finally reached that point where gold might actually give us a strong buying signal as it breaches 1775.
If Gold fails to break this first resistance, we can expect it try 1680 one more time. Now what should you expect from this as a trader?
Technical perspective:
1- Price is struggling to break the 23.6% Fibo retracement level (Fibos are very useful to determine retracements from a big trend move), if broken, we are looking to approach 1830 as a next solid resistance in the way. Bulls can target this price level as their Take profit. But this only holds true if 1775 is breached not otherwise.
2- If price bounces off the price level of 1775, we are looking back to 1680 where bears will attempt to take gold lower to the levels as mentioned in my previous Ideas (1450-1500). Unless 1680 is broken, we cannot sell beyond it.
3- Expect a little consolidation at this current price level, although I would personally prefer either a sharp slice through or a sharp bounce.
4- We are not considering any time frame lower than Daily for the confirmation of either 1775 breach or bounce.
NOTE: It is paramount that you remain patient and let the market decide where it wants to go and enter with the winning side. Till then, just watch! I hope this analysis helps you get a better idea of what's actually happening on the gold price chart.
Personal Opinion:
I am expecting a bounce either from 1775 or 1830 since Feds just recently hiked the interest rates again (from 1.75% to 2.5%) and USD can be expected to strengthen in the coming days. Therefore, a bounce from either of these levels is highly expected but we shall see when it happens, till then we side with the current market outlook.
Take extra care of the risk you want to take with each analysis! happy trading and happier profits :)
If Gold fails to break this first resistance, we can expect it try 1680 one more time. Now what should you expect from this as a trader?
Technical perspective:
1- Price is struggling to break the 23.6% Fibo retracement level (Fibos are very useful to determine retracements from a big trend move), if broken, we are looking to approach 1830 as a next solid resistance in the way. Bulls can target this price level as their Take profit. But this only holds true if 1775 is breached not otherwise.
2- If price bounces off the price level of 1775, we are looking back to 1680 where bears will attempt to take gold lower to the levels as mentioned in my previous Ideas (1450-1500). Unless 1680 is broken, we cannot sell beyond it.
3- Expect a little consolidation at this current price level, although I would personally prefer either a sharp slice through or a sharp bounce.
4- We are not considering any time frame lower than Daily for the confirmation of either 1775 breach or bounce.
NOTE: It is paramount that you remain patient and let the market decide where it wants to go and enter with the winning side. Till then, just watch! I hope this analysis helps you get a better idea of what's actually happening on the gold price chart.
Personal Opinion:
I am expecting a bounce either from 1775 or 1830 since Feds just recently hiked the interest rates again (from 1.75% to 2.5%) and USD can be expected to strengthen in the coming days. Therefore, a bounce from either of these levels is highly expected but we shall see when it happens, till then we side with the current market outlook.
Take extra care of the risk you want to take with each analysis! happy trading and happier profits :)
