XAU/USD: technical analysis and trading recommendations_08/11/2022

 
 
 
 
 
 
 
XAUUSD W

Considering the current situation and the weakening of the dollar against the background of the remaining high inflation, yesterday the gold quotes updated a 6-week high near the mark of 1807.00 dollars per ounce.

One way or another, inflation in the world and the United States remains high, which makes investors resort to buying this popular defensive asset.

Its quotes are extremely sensitive to changes in the monetary policy of the world's leading central banks and, especially, the Fed. If the leaders of the US central bank, after yesterday's release of inflation indicators, announce a softer scenario in the tightening cycle of monetary policy, then gold may receive additional support.

Gold does not bring investment income, but is in active demand in situations of geopolitical and economic uncertainty, as well as a protective asset in the face of rising inflation. Now is just such a moment.

At the same time, it should be noted that gold quotes are again in the area of ​​the key level of 1800.00, and some representatives of the Fed said yesterday that it is still too early to declare a "victory over inflation."

XAUUSD D

In case of further growth, the pair will move towards the key resistance level 1826.00 (EМА200 on the daily and ЕМА50 on the weekly charts), the breakdown of which will again bring XAU/USD into the zone of a long-term bull market.

In an alternative scenario, and after the breakdown of the important support level 1771.00 (EMA200 on the 4-hour chart), XAU/USD will head deeper into the descending channel on the daily chart, towards its lower border and the 1600.00 mark.

XAUUSD H4

The first signal for the realization of this alternative scenario is a breakdown of the support level 1783.00 (EMA50 on the daily chart).

Support levels: 1783.00, 1777.00, 1771.00, 1747.00, 1700.00, 1690.00, 1682.00, 1670.00

Resistance levels: 1800.00, 1807.00, 1826.00, 1832.00, 1875.00

Trading recommendations

Sell Stop 1780.00. Stop Loss 1803.00. Take-Profit 1777.00, 1771.00, 1747.00, 1700.00, 1690.00, 1682.00, 1670.00

Buy Stop 1803.00. Stop Loss 1780.00. Take-Profit 1807.00, 1826.00, 1832.00, 1875.00