Its been 10 days since we last reported on the XAUUSD price action. When last spoke about the pair, price traded bearish at level 1776.22. We saw the pair drop to level 1750.00. This is where the XAU finds support. Here’s a link to the previous analysis. This will help you understand how far price has drop and why there could be a rise.(https://fxsits.com/the-gold-xauusd-price-plummets-as-sellers-push-the-markets-bearish/) In todays analysis we see react different to the previous analysis.
In both Daily and H4 time frame we see how price acts around level 1750.00. At this level we see how buyers push the market back to level 1800.06 . However, yesterdays daily close is not convincing enough to trade the market bullish. Our analyst believe that if price does break past level 1800.06 we could see a bullish continuation. We think that price could possibly test level 1874.24 where it might find resistance. If buyers push the market further we may see level 1908.95 being tested.
Since the XAU finds support at the major level and shows bullish potential. We’ve set our bullish target at level 1908.95 .We think that price may possibly reach that level early next month. For now price looks as if it is ranging in-between level 1800.06 and 1750.00. A breakout according to the breakout strategy may be a leading indicator for a bullish trade.
NB: Warning Before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consider position sizing before entering a trade and manage your risk accordingly. Please read risk warning before deciding to trade the markets.