Jump to content

Gold Weekly Tech Forecast: XAU/USD at a Decision Point


Recommended Posts

GOLD WEEKLY TECHNICAL FORECAST: BULLISH ABOVE 1970 WEEKLY CLOSE

  • All eyes on gold’s weekly close ahead of the 4-day Easter weekend
  • Bullish continuation and invalidation levels identified and discussed

Gold Weekly Tech Forecast: XAU/USD at a Decision Point

Gold has put together a phenomenal bullish advance over the last 5, arguably 6, trading days prior to Thursday. The precious metal put in a strong rejection of the 1915 level which forms the origin of the latest bullish move.

Before that, price action had been oscillating largely between 1915 and the zone of resistance with a midpoint of 1965. Twice we witnessed a breakdown of the 1915 level which ultimately rejected lower prices by closing back above 1915 on both occasions – further reinforcing the multi-week range.

Then on Wednesday gold broke and held above the zone of resistance (blue rectangle), reigniting interest from buyers and reviving possibilities of a return to the psychological level of 2000.

XAU/USD KEY TECHNICAL LEVELS

In the afternoon session in London, gold witnessed a fair amount of selling as the dollar (DXY) rose back above the crucial 100 mark. However, a close above trendline support and the upper side of the zone of resistance (blue rectangle, 1970) would maintain a bullish posture heading into next week. The pullback is a welcome sign, especially after the 5/6 successive daily gains and may present a more attractive level for bullish continuation.

However, a close below the zone of resistance could invalidate the recent breakout as a ‘fakeout’ and result in prices returning back to the prior range. Once again, I believe a close below 1970 opens the door to lower gold prices in the week ahead.

GOLD (XAU/USD) DAILY CHART

Gold Weekly Tech Forecast: XAU/USD at a Decision Point

Source: TradingView, prepared by Richard Snow

The 4-hour chart with the shorter-term trendline shows the recent advance and a bit more insight into how gold is likely to shape up ahead of next week. With the 4-day Easter weekend, liquidity will be rather thin, meaning we may see volatility pick up ahead of Tuesday. Therefore, Thursday’s daily and weekly close could very well inform where we start next week.

GOLD (XAU/USD) 4-HOUR CHART

Gold Weekly Tech Forecast: XAU/USD at a Decision Point

Source: TradingView, prepared by Richard Snow

 

Written by Richard Snow for DailyFX.com. 15th April 2022

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      20,157
    • Total Posts
      88,292
    • Total Members
      69,135
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    JULS
    Joined 07/10/22 17:54
  • Posts

    • Hi @greenscorpio1000 Unfortunately we do not have this feature on the mobile app. You can only access the Swap rates on the web platform. The screenshot attached is an indication of todays rate (now at -2.67) which will be a charge on the account. Please note that open positions held through 10pm (UK time) on Fridays will be adjusted for three days’ worth of funding to cover the weekend. All the best, O.D
    • Recent commentary from a number of high-profile Federal Reserve members indicates their willingness to keep up the pressure on fighting inflation.   The incoming consumer price inflation (CPI) data on Thursday will be key and may surprise on the upside as has been the case for much of this year. IGTV’s Jeremy Naylor looks at EUR/USD.          
    • Market data to trade the week starting 10 October: US earnings; US CPI For equity traders it’s the start of another period of intense activity as third quarter earnings begin to be released. IG technical analyst, Axel Rudolph FSTA, looks at the chart of JP Morgan (JPM) as an opener. Axel also examines a trade around US inflation and chooses to analyse the S&P 500.          
×
×
  • Create New...