XAU/USD: technical analysis and trading recommendations_04/01/2022

 
 
 
 
 
 
 

At the time of publication of this article, the XAU/USD pair is traded near the 1934.00 mark, through which there is an important short-term support level (EMA200 on the 1-hour chart).

XAU/USD H1 Chart

Its breakdown may cause the beginning of a downward correction with targets at the support levels 1922.00 (EMA200 on the 4-hour chart), 1908.00 (EMA50 on the daily chart).

XAU/USD H4 Chart

A deeper correction is unlikely. XAU/USD remains in the bull market zone, moving in ascending channels on the daily and weekly charts. In the current situation, long positions look preferable. A signal to enter them may be a breakdown of the local resistance level 1939.00 (today's high) or the local resistance level 1965.00. A confirmation signal will be a breakdown of the local resistance level 1975.00 (the maximum of the last month).

XAU/USD D Chart

In an alternative scenario, and after the breakdown of the support level 1934.00, XAU/USD will fall to the support levels 1922.00 or 1908.00. Pending orders to buy can be placed near these levels and 1900.00 mark.

Nevertheless, theoretically, a deeper decline can still be allowed, up to the key support levels 1856.00 (EMA144 on the daily chart), 1842.00 (EMA200 on the daily chart), 1832.00 (Fibonacci level 23.6% of the correction to the growth wave since December 2015 and 1050.00 mark), but only - theoretically.

XAU/USD W Chart

A strong upward momentum prevails, which makes a downward correction unlikely and insignificant. In the current situation, investors perceive gold as a hedging and value store tool, protecting investments from many risks. The prevailing negative fundamental background on the market creates preconditions for further growth of gold quotes.

Support levels: 1934.00, 1922.00, 1908.00, 1900.00, 1877.00, 1856.00, 1842.00, 1832.00, 1800.00

Resistance levels: 1949.00, 1965.00, 1975.00, 2000.00, 2010.00, 2070.00, 2075.00

Trading recommendations

Sell Stop 1925.00. Stop Loss 1941.00. Take-Profit 1922.00, 1908.00, 1900.00, 1877.00, 1856.00, 1842.00, 1832.00, 1800.00

Buy Stop 1941.00. Stop Loss 1925.00. Buy Limit 1920.00, 1910.00, 1900.00. Stop Loss 1885.00. Take-Profit 1949.00, 1965.00, 1975.00, 2000.00, 2010.00, 2070.00, 2075.00, 2100.00, 2200.00