XAU/USD: Technical Analysis and Trading Recommendations_11/24/2021
As we noted above, the XAU / USD pair has dropped sharply in the past few days. Since the beginning of November, the increase has amounted to more than 3.5% against the background of strong inflation in the United States.
Nevertheless, XAU / USD is declining again, having dropped below the key support level 1800.00 (ЕМА200 on the daily chart and ЕМА50 on the weekly chart).
The decline accelerated after it became known that US President Joe Biden had appointed incumbent US Federal Reserve Chairman Jerome Powell for a second term. This intensified the talk that the current Fed's course of tightening monetary policy will be further developed in the near future. At the time of this posting, XAU / USD is traded near 1790.00 mark. If the decline continues, the targets will be the support levels 1759.00 (local minimums and the lower border of the ascending channel on the daily chart), 1725.00 (local lows), 1685.00 (ЕМА144 on the weekly chart and 61.8% Fibonacci level of the correction to the growth wave since November 2015 years and marks 1050.00), 1620.00 (ЕМА200 on the weekly chart).
In an alternative scenario and after a return into the zone above 1800.00 mark, XAU / USD will continue to grow towards the local maximum 1877.00 and the upper border of the ascending channel on the daily chart with intermediate targets at resistance levels 1813.00 (ЕМА200 on the 4-hour chart), 1830.00 (ЕМА200 on the 1-hour chart), 1835.00 (local highs).
Breakdown of the local resistance level 1877.00 will create preconditions for further growth of the pair.
Support levels: 1759.00, 1725.00, 1685.00, 1620.00, 1560.00
Resistance levels: 1800.00, 1812.00, 1830.00, 1835.00, 1877.00, 1900.00, 1916.00, 1963.00, 1976.00, 2000.00, 2010.00
Sell Stop 1781.00. Stop-Loss 1813.00. Take-Profit 1759.00, 1725.00, 1685.00, 1620.00, 1560.00
Buy Stop 1813.00. Stop-Loss 1781.00. Take-Profit 1830.00, 1835.00, 1877.00, 1900.00, 1916.00, 1963.00, 1976.00, 2000.00, 2010.00