XAU/USD Outlook After Recent Weakness on August 17, 2023
Introduction:
Amidst relentless fluctuations, the young gold bull (XAU/USD) has recently undergone a period of struggle to maintain any meaningful upward momentum. Nevertheless, a weakening trend has pushed the gold price close to its lowest levels since mid-March during the Asian trading session. In this analysis, we delve into the trading situation and prospects of the XAU/USD pair.
Daily Chart and Trend Analysis:
A deeper look into the daily chart reveals that the gold price is sustaining a pattern of lower highs, while currently developing below the 200-day Simple Moving Average (SMA) - a first for this year. Notably, the 20-day SMA is ascending at a slower pace compared to the 100-day SMA and is situated below it, indicating that selling pressure remains intact.
Technical Indicators:
The technical indicators continue to reflect a bearish sentiment. For instance, the Relative Strength Index (RSI) has decreased to around 34, signifying control by the selling side. This often signifies a weakening market sentiment.
Short-Term Predictions:
Transitioning to the 4-hour chart, we observe continued signs of considerable weakness. The 20-day SMA is declining, the 100-day SMA is expanding, and both are sliding beneath the 200-day SMA. This presents a clear indication of substantial downward momentum in the near future.
Support and Resistance Levels:
Key support is found at $1,896.30, followed by $1,888.30 and $1,879.95. Noteworthy resistance levels are situated at $1,915.30, $1,921, and $1,934.85.
Daily Trading Recommendations:
For SELL opportunities, consider entering XAU/USD at 1900 - 1899.
Stop Loss: 1906
Take Profit 1: 1890
Take Profit 2: 1885
Take Profit 3: 1880
For BUY opportunities, contemplate entering XAU/USD at 1882 - 1883.
Stop Loss: 1880
Take Profit 1: 1889
Take Profit 2: 1895
Take Profit 3: 1900
Note: Always implement appropriate Take Profit and Stop Loss levels to ensure optimal trading performance.
Conclusion:
Stay tuned to the gold market in the upcoming week and make sure not to miss out on any potential opportunities!
Amidst relentless fluctuations, the young gold bull (XAU/USD) has recently undergone a period of struggle to maintain any meaningful upward momentum. Nevertheless, a weakening trend has pushed the gold price close to its lowest levels since mid-March during the Asian trading session. In this analysis, we delve into the trading situation and prospects of the XAU/USD pair.
Daily Chart and Trend Analysis:
A deeper look into the daily chart reveals that the gold price is sustaining a pattern of lower highs, while currently developing below the 200-day Simple Moving Average (SMA) - a first for this year. Notably, the 20-day SMA is ascending at a slower pace compared to the 100-day SMA and is situated below it, indicating that selling pressure remains intact.
Technical Indicators:
The technical indicators continue to reflect a bearish sentiment. For instance, the Relative Strength Index (RSI) has decreased to around 34, signifying control by the selling side. This often signifies a weakening market sentiment.
Short-Term Predictions:
Transitioning to the 4-hour chart, we observe continued signs of considerable weakness. The 20-day SMA is declining, the 100-day SMA is expanding, and both are sliding beneath the 200-day SMA. This presents a clear indication of substantial downward momentum in the near future.
Support and Resistance Levels:
Key support is found at $1,896.30, followed by $1,888.30 and $1,879.95. Noteworthy resistance levels are situated at $1,915.30, $1,921, and $1,934.85.
Daily Trading Recommendations:
For SELL opportunities, consider entering XAU/USD at 1900 - 1899.
Stop Loss: 1906
Take Profit 1: 1890
Take Profit 2: 1885
Take Profit 3: 1880
For BUY opportunities, contemplate entering XAU/USD at 1882 - 1883.
Stop Loss: 1880
Take Profit 1: 1889
Take Profit 2: 1895
Take Profit 3: 1900
Note: Always implement appropriate Take Profit and Stop Loss levels to ensure optimal trading performance.
Conclusion:
Stay tuned to the gold market in the upcoming week and make sure not to miss out on any potential opportunities!
