Gold Technical Price Outlook: XAU/USD Near-term Trade Levels
Gold prices are up just over 1% despite a weekly range of over 2.2% as markets digest the results of the US Presidential Election. The recovery takes XAU/USD back into multi-month trend resistance and we’re looking for inflection up here for guidance. These are the updated targets and invalidation levels that matter on the XAU/USD technical charts heading into the close of a volatile week. Review my latest Strategy Webinar for an in-depth breakdown of this gold technical setup and more.
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Gold Price Chart – XAU/USD Daily
Technical Outlook: In my last Gold Price Outlook we noted that XAU/USD was, “consolidating within the October opening-range just below multi-month downtrend resistance.” Our focus was on confluence resistance near “the 2011 high / October high-day close at 1920/22 with a breach / close above 1935 needed to mark resumption.” Price registered a high at 1931 one week later before reversing sharply with the September low-day close at 1867 catching the decline into the close of the month.
That recovery is now once again testing multi-month downtrend resistance on the heels of last night’s US Presidential Elections. Look for a reaction off this trendline with a breach / close above 1935 still needed to validate a breakout of the September downtrend towards 1988/92. Daily support at 1879 backed by 1867– weakness beyond this threshold would be needed to mark resumption of the August decline.
Gold Price Chart – XAU/USD 120min
Notes: A closer look at Gold price action shows XAU/USD continuing to trade within the confines a descending pitchfork formation extending off the late-August decline with the weekly opening-range taking shape just below trend resistance. Initial support steady at 1881/84 with a close below 1867 needed fuel the next leg lower in price towards 1849 and the 38.2% Fibonacci retracement at 1837.
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Bottom line: Gold prices are in a near-term…
Go to the news source: The Post-Election Battle for 1900– XAU/USD Levels