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Gold prices (XAU/USD) saw an upward rebound yesterday, benefiting from touching the 3310 support level to reverse the expected downward trend from the previous report. That report was based on the price remaining stable below the 3340 resistance level, noting that a break of 3340 might open the way for a recovery attempt to quickly target 3359. The price recorded its highest level at $3356, compensating for the previous sell position.
Technical Outlook – 4-Hour Timeframe
Current short-term movements are seeing a decline as a result of hitting the 50-day Simple Moving Average resistance around 3355, which forced the price to return to a downward path. This occurred simultaneously with clear negative signals appearing on the Relative Strength Index after it reached overbought areas.
Probable Scenario:
Bullish Scenario: The downtrend remains dominant as long as trading stays below 3356. We need to see a short-term break of the 3335 level, which would reinforce the chances of the decline continuing, targeting 3315. A break of this level would pave the way for losses targeting the 3392 area, which is a key support level.
Bearish Scenario: If the 3356 resistance is broken: This might open the way for a recovery attempt to quickly target 3374 and then 3392.
Fundamental Note:
Today, we are awaiting high-impact economic data from the US economy: “Weekly Unemployment Claims, Preliminary Reading of the Services and Manufacturing PMI.” This data may cause strong price volatility when released.
Warning: The risk level is high amid ongoing trade and geopolitical tensions, and all scenarios may be plausible.
Risk Disclaimer: Trading CFDs involves risks, and therefore all scenarios may be plausible. The content above is not a recommendation to sell or buy but rather an explanatory reading of price movement on the chart.
| S1: 3315.00 | R1: 3356.00 |
| S2: 3292.00 | R2: 3374.00 |
| S3: 3274.00 | R3: 3397.00 |
