Gold prices reversed an early-week advance on the heels of the Non-Farm Payroll launch with XAU/USD down 0.30% forward of the New York shut on Friday. The decline takes gold again right into a important pivot zone we’ve been monitoring for months now. These are the up to date targets and invalidation ranges that matter on the XAU/USD weekly chart. Review my latestWeekly Strategy Webinar for an in-depth breakdown of this gold worth setup and extra.
New to Gold Buying and selling? Get began with this Free How to Trade Gold -Beginners Guide
Gold Value Chart – XAU/USD Weekly
Notes:In my final Gold Price Weekly Outlook we famous that XAU/USD was, “rebounding off main assist with the advance nonetheless in danger whereas beneath channel resistance.” The main target was on the, “descending channel formation extending off the yearly highs with confluence trendline resistance eyed round 1490s – search for a response there IF reached.” Value registered a excessive at simply shy of 1484 this week earlier than turning sharply decrease on the again of Friday’s US Non-Farm Payroll release- so was that the excessive we have been on the lookout for?
The decline pared your complete weekly advance with worth now poised to shut simply above important assist at 1451/56– a area outlined by the November low-close and the 100% extension of the 2015 advance. A break / shut beneath this threshold is required to mark resumption of the medium-term downtrend with such a situation concentrating on the median-line / 100% extension of the September decline at 1420 backed by the 38.2% retracement of the 2018 advance at 1405. Weekly resistance stays regular at 1488/90 – a detailed above this zone can be required to recommend a extra vital low is in place.
For an entire breakdown of Michael’s buying and selling technique, overview his Foundations of Technical Analysis series on Building a Trading Strategy
Backside line:The current restoration in Gold costs failed simply forward of down-trend resistance and take XAU/USD again right into a important assist zone. From a buying and selling standpoint, a very good place to cut back quick publicity / decrease protecting stops. Search for a response right here with a detailed beneath wanted to maintain the rapid short-bias viable. As famous earlier this week, “Finally, we’re on the lookout for a break of the 1451-1490vary for additional steerage on our medium-term directional bias.” Overview my newest Gold Price Outlook for a more in-depth take a look at the near-term XAU/USD technical buying and selling ranges.
Earlier Weekly Technical Charts
— Written by Michael Boutros, Technical Foreign money Strategist with DailyFX
Comply with Michael on Twitter @MBForex