Gold Technical Price Forecast: XAU/USD Trade Levels in the Short Term Technical trade levels for gold have been revised – Daily and Intraday Charts The XAU/USD pair has recovered from major uptrend support and is now probing early resistance levels. Are you new to the gold market? Get started with this free Beginner’s Guide to Gold Trading.
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Gold prices have risen more than 3.7 percent since their June lows, with the XAU/USD pair continuing to rise off crucial technical support. While the immediate rebound may be susceptible, the technical posture suggests the wider correction may still have more upside potential. On the XAU/USD technical charts, here are the updated objectives and invalidation levels that matter. Check out my most recent Strategy Webinar for a more in-depth look at this gold technical setup and other topics. XAU/USD Daily Chart – Gold Price Technical Strategist Michael Boutros prepared this report; Gold on Tradingview Technical Predictions: We noted in my latest Gold Price Outlook that XAU/USD has, “The market has reached a critical uptrend support level, and all eyes are on what happens next. A good zone to minimize short-exposure / lower protective stops from a trading stance.” The focus was on the 1764-69 support zone, which was established by the 50% retracement of the 2020 rise, the 61.8 percent Fibonacci extension of the 2020 collapse, and the 61.8 percent retracement off the March surge. In the latter days of June, gold hit an intraday low of 1750 before recovering with a six-day rally that tested resistance this week around the 38.2 percent retracement of the June slide at 1814. The drop from the June highs appears to have completed a five-wave pattern, implying that a corrective position on the gold recovery may be in order. With that in mind, crucial daily support has now expanded to 1764/76, which encompasses the monthly open, the 61.8 percent retracement of the most recent rally, and the sliding parallel extending off the yearly low. A break above this resistance zone on the upside would complete a corrective bounce and maybe provide a fade-able event from more favorable levels. To signal the restart of the larger uptrend, a breach / close above 1853 would be required. XAU/USD 120min Gold Price Chart Notes: A closer examination of the Gold price action reveals that XAU/USD broke through near-term downtrend resistance last week, moving within a newly defined ascending pitchfork formation off the lows. The pullback is now attempting initial support at the median-line / 2012 high at 1795- look for near-term inflection here with a break risking a wider setback towards the weekly opening-range lows at 1784 and 1776- both zones of interest for possible downward exhaustion IF achieved. If the price closes above 1814, the upper parallel / 50 percent retracement at 1833 will be revealed. The bottom line is that gold’s rebound from important uptrend support is now testing first resistance. If the correction interpretation is true, look for downward exhaustion ahead of 1776, with a breach of the highs turning the emphasis towards the upper parallels. For a detailed look at the longer-term XAU/USD technical trading levels, see my most recent Gold Weekly Price Outlook. Review Michael’s Foundations of Technical Analysis series on Building a Trading Method for a detailed description of his trading strategy. XAU/USD Price Chart – Gold Trader Sentiment IG Client Sentiment data suggests that traders are net-long. Gold has a ratio of +5.41 (84.39 percent of traders are long), which is a negative reading. Long positions are down 4.48 percent from yesterday and 4.44 percent from the previous week. Short positions are up 2.89 percent from yesterday and up 3.56 percent from the previous week. We tend to be contrarians when it comes to crowd sentiment, and the fact that traders are net-long on gold signals that prices will continue to decline. Traders are, however, less net-long today than they were yesterday and last week. Despite the fact that traders are net-long, recent changes in mood suggest that the present Gold price trend may shortly reverse higher. —-Active Technical Setups- authored by Michael Boutros, DailyFX’s Technical Strategist Michael can be found on Twitter as @MBForex./n
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