Amid a weakening dollar and growing risks of a recession in the US and the global economy, gold quotes have again turned to growth.
XAU/USD is rising for the 3rd day in a row today and is trading near 1764.00 as of this writing, in close proximity to the strong resistance level at 1766.00 (200 EMA on the 4-hour chart). In case of its breakdown, the important resistance level of 1775.00 (50 EMA on the daily chart) becomes the target, the breakdown of which will increase the probability of further corrective growth towards the key resistance levels of 1800.00, 1819.00 (200 EMA on the daily chart). Their breakdown will confirm the return of XAU/USD to the long-term bull market zone.
In an alternative scenario, there will be a rebound from the resistance level of 1766.00, and the XAU/USD pair will resume its decline. The first signal to open short positions will be a breakdown of the important short-term support level of 1757.00 (200 EMA on the 1-hour chart).
A breakdown of the key support level of 1690.00 (200 EMA on the weekly chart) will cause XAU/USD to enter the long-term bear market zone.
Support levels: 1757.00, 1748.00, 1700.00, 1690.00, 1682.00
Resistance levels: 1766.00, 1775.00, 1800.00, 1819.00, 1832.00, 1875.00
Trading Tips
Sell Stop 1755.00. Stop-Loss 1770.00. Take-Profit 1748.00, 1700.00, 1690.00, 1682.00
Buy Stop 1770.00. Stop-Loss 1755.00. Take-Profit 1775.00, 1800.00, 1819.00, 1832.00, 1875.00
