XAU/USD traded higher on Tuesday, but hit resistance slightly below its record peak, near the 2075 zone, marked by the high of August 6th, 2020, and today, it pulled back. However, the precious metal remains above the steep uptrend line drawn from the low of February 3rd, as well as well above the upside support line drawn from the low of August 9th. With these technical signs in mind, we will consider the short-term picture to still be positive.
We believe that the bulls could take charge again from near the 1974 zone, marked by the inside swing high of February 24th, and perhaps aim for another test near 2075. If they are not willing to stop there this time around, they will enter uncharted territory, and with no prior highs and inside swing lows to mark our next resistances, we will consider as such the psychological zones of 2100 and 2150.
Shifting attention to out short-term oscillators, we see that the RSI exited its above-70 zone, while the MACD, although above both its zero and trigger lines, shows signs it could turn down soon. Both indicators still detect strong upside speed, but they also suggest a slight slowdown, which makes us careful that some further retreat may be in the works before the next positive leg, perhaps for the metal to test the aforementioned steep upside line.
We will start examining the case of a larger negative correction upon a break below 1915, a support marked by the high of June 1st. Such a move could confirm the break below the steep uptrend line and may allow the bears to push towards the low of February 24th, at 1880. A break below that barrier could extend the fall towards the 1845 level, marked by the low of February 15th, or the upside line taken from the low of August 9th.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.82% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2022 JFD Group Ltd.