XAU/USD: Technical Analysis and Trading Recommendations_10/15/2021

 
 
 
 
 
 
 

After a sharp rise the day before, the XAU / USD pair is declining. The breakout of the important long-term resistance level 1795.00 (ЕМА200 on the daily chart) did not take place, although on Thursday the price briefly again reached the psychologically important level of 1800.00 dollars per ounce.

At the time of publication of this article, XAU / USD is developing downward dynamics towards the mid-term support level of 1778.00 (ЕМА50 on the daily chart).

Nevertheless, it is better to open short positions after the breakdown of the strong short-term support level 1772.00 (ЕМА200 on 4-hour and 1-hour charts) with targets at local support levels 1759.00, 1746.00, 1725.00.

More distant targets of decline are located at support levels 1685.00 (Fibonacci level 61.8% of the correction to the growth wave since November 2015 and the level of 1050.00), 1675.00 (ЕМА144 on the weekly chart), 1610.00 (ЕМА200 on the weekly chart). A breakdown of the support level 1560.00 (50% Fibonacci level and the lower line of the descending channel on the weekly chart) will increase the risks of XAU / USD moving into a long-term downtrend.

In the alternative scenario, and after the breakdown of the resistance level of 1800.00, further growth of XAU / USD is possible with an intermediate target at the local resistance level of 1835.00.

Remaining below the key resistance level of 1800.00, XAU / USD is in the mid-term bear market zone.

Support levels: 1778.00, 1772.00, 1759.00, 1746.00, 1725.00, 1685.00, 1670.00, 1605.00, 1560.00

Resistance levels: 1795.00, 1800.00, 1835.00, 1900.00, 1916.00, 1963.00, 1976.00, 2000.00, 2010.00

Trading recommendations

Sell Stop 1771.00. Stop-Loss 1802.00. Take-Profit 1759.00, 1746.00, 1725.00, 1685.00, 1670.00, 1605.00, 1560.00

Buy Stop 1802.00. Stop-Loss 1771.00. Take-Profit 1835.00, 1900.00, 1916.00, 1963.00, 1976.00, 2000.00, 2010.00