XAU/USD: technical analysis and trading recommendations_08/19/2022


The dollar is successfully recovering the positions lost in the previous 3 weeks, also strengthening against the traditional defensive assets - the yen, the franc, and gold. As for this precious metal, its quotes are extremely sensitive to changes in the monetary policy of the world's leading central banks and, especially, the Fed. 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.


At the time of publication of this article, it is traded near the 1750.00 mark, falling for the 5th day in a row and approaching the strong support level 1748.00 (EMA144 on the weekly chart). In case of its breakdown, the key support level 1690.00 (EMA200 on the weekly chart) becomes the target, the breakdown of which will cause XAU/USD to enter the long-term bearish market zone.


In an alternative scenario, and after there is still a rebound from the support level 1748.00, the signal for the resumption of long positions will be a breakdown of the important resistance levels 1772.00 (EMA200 on the 4-hour chart), 1773.00 (EMA200 on the 1-hour chart), 1780.00 (EMA50 on the daily chart). The breakdown of the key resistance level 1822.00 (EMA200 on the daily chart) will confirm the scenario of the resumption of the long-term bullish trend for XAU/USD.


Support levels: 1748.00, 1700.00, 1690.00, 1682.00, 1670.00

Resistance levels: 1772.00, 1773.00, 1780.00, 1800.00, 1822.00, 1832.00, 1875.00

Trading recommendations

Sell Stop 1746.00. Stop Loss 1761.00. Take Profit 1700.00, 1690.00, 1682.00, 1670.00

Buy Stop 1761.00. Stop Loss 1746.00. Take-Profit 1772.00, 1773.00, 1780.00, 1800.00, 1822.00, 1832.00, 1875.00