XAU/USD Technical Analysis | Forexlive
On the daily chart below, we can
see that gold keeps on slowly trending downwards. After the break of the big
upward trendline that defined the uptrend since
November 2022, the precious metal just kept on losing ground.
The moving
averages have crossed to the downside signalling a change in trend. The culprit
was the blockbuster NFP report and the subsequent hot
key economic data that made the market to reprice higher future interest rates
expectations. Gold is inversely correlated with real yields, so the recent rise
in real yields is giving gold a hard time.
On the 4 hour chart below, we can
see how gold’s price action has been clean recently with downside extensions
followed by pullbacks to the broken supports turned resistances.
If the economic data keep on
surprising upwards, then we will most likely see even lower prices going
forward. On the other hand, if we start to get misses, then the market may
think that the January data was indeed just a blip, and we should see higher
prices instead.
On the 1 hour chart below, we can
see that right now the price is trading around the support zone at 1825. A
clean break below, especially if supported by a fundamental catalyst, will give
sellers conviction for lower lows, possibly finding some support at the 1800
round number.
For the buyers, on the other
hand, a bigger bounce from the current support accompanied by a new higher high
and the moving averages crossing upwards, should give conviction for a move
towards the resistance at 1855.