XAUUSD, when observed on a daily time frame, is currently in an uptrend and is exhibiting a pattern of higher highs (HH) and higher lows (HL). However, there has been a significant decrease in price accompanied by high trading volume, which breaks the previous higher low according to Dow Theory. This suggests that GOLD is likely to print lower lows (LL) and lower highs (LH) in the near future.
On the weekly time frame, XAUSD has faced rejection three times within the 2070 to 2080 zone, which acts as a strong resistance level. Each time the XAUSD (Gold) price reaches this zone on the weekly chart, it subsequently experiences a downward movement. This indicates that the 2070 to 2080 zone is a significant resistance area for GOLD.
Furthermore, on the daily time frame, there is a bearish divergence forming, and the price has also broken the previous higher low. These factors contribute to the consideration of a potential reversal zone for GOLD.
It is important to note that technical analysis indicators are not infallible, and other factors such as market sentiment and fundamental news can influence price movements. Traders should use these technical indications in conjunction with other analysis tools and consider the broader market context before making trading decisions.
On the weekly time frame, XAUSD has faced rejection three times within the 2070 to 2080 zone, which acts as a strong resistance level. Each time the XAUSD (Gold) price reaches this zone on the weekly chart, it subsequently experiences a downward movement. This indicates that the 2070 to 2080 zone is a significant resistance area for GOLD.
Furthermore, on the daily time frame, there is a bearish divergence forming, and the price has also broken the previous higher low. These factors contribute to the consideration of a potential reversal zone for GOLD.
It is important to note that technical analysis indicators are not infallible, and other factors such as market sentiment and fundamental news can influence price movements. Traders should use these technical indications in conjunction with other analysis tools and consider the broader market context before making trading decisions.
Trade closed: target reached:
TP 1: HIT :-)
Trade closed: target reached:
TP 2: HIT :-)
