Key points:

  • The price is now trading near 1920 as expected in our last analysis.Key support zone is in focus now.
  • The pair could move downwards if there is a break below the 1894 key support level.
  • A daily close above 1936-1946 is necessary for the bulls.

Technical Indicators:

  • 4 hour Momentum – The Momentum for XAUUSD is slowly gaining pace in the bearish zone.
  • 4 hour RSI (Relative Strength Index) – The RSI for XAUUSD is now near the 50 level.
  • The 100 Simple Moving Average is also resisting around the 1955 level in the 4hr time frame.

Major Areas of Consideration:

  • Key Support Zone 1894-1906
  • Key Resistance Zone 1936-1946.

What to watch this week:

As long as price remains above 1894.14, a pullback towards 1974.80-2000.55 is expected. To confirm this pullback, we need a daily close above the 1936 key resistance level. However, as the 4 hour chart, daily and weekly charts are showing more weakness for XAUUSD. So in case of pullback, key resistance zone will be the best zone for short positions.



Events to look out :

  • PBOC Interest Rate Decision
  • Producer Price Index
  • Fed Chair Powell speech
  • RBA’s Governor Lowe speech
  • Consumer Price Index and Core
  • UK Annual Budget Release
  • New Home Sales
  • Crude Oil Inventories
  • Interest Rate Decision and Statement
  • Durable Goods
  • Manufacturing PMI

To sum up all, the pair made a new low at a very important support zone. Holding below 1936 is more bearish and risks a sharp slide below 1894.14.A break below this will quickly target 1876.55 where buyers can reappear.

Happy Pips!