XAUUSD - Weekly overview

We’ve approached a key juncture here, it’s the bottom of the trendline on a long term timeframe so we would expect there to be a lot of buyers entering the market here. We’ll look at the shorter timeframes to get a clearer picture but we see a high possibility of the price retracing back up a little to our key resistance levels. We wouldn’t be surprised to see a small short spike down at some point during the day to trigger some stops then the retracement to commence. We're still bears longterm and expecting the price to go lower before a bigger retracement higher.

Support:

1730
1710
1691
1676
1645

Resistance:

1755
1762-65
1790

Last weeks analysis:

Please also refer to our monthly trend chart which shows what we're seeing in terms of the fractal.

Looking at this chart you can see we still have room to go lower. We're going to look more closely at the lower timeframes to get a clearer picture of where me may head over the rest of the month.

We’re due a technical retracement so the levels we’re looking at for reactions are on the chart. Bulls are being punished at the moment and we really don’t think its over yet. There will be a lot of buyers now sweating with stop losses below around that 1670-60 level. We’re expecting another liquidity grab from above and potentially another drop to lower levels.