On Wednesday, gold recovered some positive traction and broke two consecutive days in a loss train. The precious metal has recovered most of the nightly drop to $1,642 level, as doubts about the stimulus package proposed by US President Donald Trump to mitigate the economic impact of the Coronavirus epidemic have affected risk sentiment.
Key Levels
Resistance Levels: $1,703, $1,690, $1,675
Support Levels: $1,642, $1,625, $1,611
XAUUSD Long term Trend: Bullish
Currently, XAUUSD is near the session peaks, in the region of $1,649-71 levels, the pair now seeks to expand the momentum further beyond the moving average of 5.
Bulls are now anticipating a recent high of $ 1,703 level reached on Monday, which marks the highest price level since December 2012. Probably short-term pullbacks in the framework of what is now a three-month uptrend may suffice, as a chance to continue bullish growth.
XAUUSD Short term Trend: Bullish
Oscillators on 4-hour charts are correcting from higher levels, still holding on to bullish territory. A subsequent movement for horizontal resistance of $1,675 level may add confidence to the constructive setting and set the stage for the resumption of the recent bullish trajectory.
If this resistance persists, a southward reversal may likely occur shortly, as the level may receive support from the horizontal lines near the level of $1,655.00.
Instrument: XAUUSD
Order: Buy
Entry price: $1,655.00
Stop: $1,625
Target: $1,703
