Gold Technical Analysis XAUUSD: Gold is trading in a weak but bearish trend today, as the precious metal recorded its highest price so far at $2745 per ounce and the lowest price at $2724, and is currently trading at $2740. This fluctuation in the price range indicates the weakness of the current downtrend, with signs of a possible improvement in the momentum in the opposite direction if conditions change.
Gold Technical Analysis XAUUSD: Price Analysis and Trading
Although the price action indicates the continuation of the downtrend at the moment.
trading above the moving averages reflects the weakness of this negative trend. Prices trading above the moving averages usually indicate the presence of potential support for the rise in the event of technical or fundamental shifts. In this case, the price being above the moving averages makes the downtrend less strong than what the price action might show when prices trade below these averages.
Technical Analysis:
- MACD Indicator: The MACD indicator shows a decline in the strength of the negative trend, as it started to show weakness in the bearish momentum with the MACD lines crossing towards the positive direction. This signal indicates that the bearish trend may be in the process of reversing, which enhances the chances of a possible reversal to an upward trend in the near future.
Forward Outlook:
Gold is expected to continue trading within a narrow range between the $2725 and $2745 levels per ounce at the moment. If gold manages to stabilize above the $2740 level and succeeds in breaking the resistance at $2745.
we may witness an upward corrective movement towards the $2755 and $2770 levels. However, if it fails to maintain its current levels and declines below $2725.
it may open the way for more negative pressure towards the support levels at $2700 and $2675.
Trading strategies based on Buy/Sell levels
| XAUUSD | In case of buying | in case of selling |
| Entry point | 2746 | 2736 |
| Target Point 1 (TP1) | First resistance: 2749 | First support: 2730 |
| Target Point 2 (TP2) | Second resistance: 2754 | Second support: 2725 |
| Stop Loss (SL) | 2747 | 2746 |
Although the overall trend for gold remains bearish, the weakening downward momentum and the price above the moving averages could signal a possible trend reversal in the near future. The MACD is showing a decline in the strength of the negative trend.
which enhances the chances of an upward move if some suitable technical conditions are met. Caution remains warranted, as any dip below $2,725 could reinforce the continuation of the downtrend.
