New upward movement is possible.

On the 4-hour chart the pair XAU/USD tested the correction level and 23.6% arc for a short-term trend several times. Currently, the price is heading towards a strong support level 1164.10. Should the level be broken through, the price may continue going down to 1148.90 (0.0% correction level for a medium-term trend). If the price bounces off this level and manages to overcome 23.6% arc, the pair is likely to grow towards 1173.40 (23.6% correction level, crossover with 38.2% arc), 1179.00 (38.2% correction level, crossover with 50.0% arc), 1183.75 (50.0% correction level, crossover with 61.8% arc). Given this, 1183.00-1185.00 is a strong resistance where 50.0% and 23.6% corrections for short and medium-term trends match.

Trading tips

If the price breaks through 23.6% arc and consolidates above 1167.20, open long positions with the targets at 1173.40, 1179.00, 1183.75 and stop-loss at 1164.50.

Alternative Scenario

The breakdown of the level 1164.10 would allow the price to fall towards 1148.90. Stop-loss should be placed at 1167.00.

XAU/USD: Fibonacci levels analysis

XAU/USD: Fibonacci levels analysis




The material published on this page is produced by LiteForex and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.



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