Gold Technical Analysis XAUUSD: Gold is trading in a bearish trend today, as it witnessed a decline from its highest level at $2575 per ounce, reaching a low of $2537 per ounce, and currently stands at $2557. Technical analysis shows that gold is facing significant selling pressure, with the price trading below the main moving averages, which supports the continuation of the downtrend.
Gold Technical Analysis XAUUSD: Technical Analysis
- Moving Averages:
Gold is currently trading below the main moving averages (SMA) in the short and long term. As the price remains below the moving average, as well as the moving average, which reflects the predominance of selling pressure in the market and increases the likelihood of the downtrend continuing.
As the price declines below these averages, the strength of the negative signal increases, indicating the weakness of the current upward momentum.
- MACD Indicator:
The MACD indicator shows negative signals, as the main line trades below the signal line.
which reinforces expectations of continued selling pressure on gold. There are also some weak crossovers indicating a decline in buying momentum, which increases the possibility of a continuation of the downtrend.
The decline in the indicator in the negative zone reflects weak purchasing power and indicates further decline in the short term.
Expectations:
- If trading continues below the major moving averages, the outlook remains bearish. Gold may test nearby support levels at $2537 per ounce, and if this level is broken, the downtrend may extend towards lower support levels such as $2500 or $2475 per ounce.
- On the other hand, any bullish bounce needs a clear break of the $2575 level first, then testing the moving averages as resistance targets. However, under the current market conditions, the general trend remains bearish.
Trading strategies based on Buy/Sell levels
| XAUUSD | In case of buying | in case of selling |
| Entry point | 2572 | 2545 |
| Target Point 1 (TP1) | First resistance: 2583 | First support: 2530 |
| Target Point 2 (TP2) | Second resistance: 2587 | Second support: 2524 |
| Stop Loss (SL) | 2545 | 2572 |
Gold is currently in a downtrend, with the price trading below the moving averages and negative confirmations from the MACD.
indicating continued selling pressure in the market. Under these conditions, gold is expected to continue testing lower support levels in the short-term, with potential volatility in the event of any bullish reversals.
