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

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