XAU/USD Price Breaks $1,850 Resistance But Facing Headwind around $1,854

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XAU/USD has been impressive as it reclaimed the $1,800 price level. Furthermore, prices have since been on a progressive move towards higher resistance, and have now broken the $1,850, to sit at roughly $1,854. However, in this session, downward forces appear to be making efforts to seize control of price action in this market.

Important Price Marks:
Resistance: $1,860, $1,870, $1,880
Support: $1,854, $1,846, $,1,840

XAU/USD Price Breaks $1,850 Resistance But Facing Headwind around $1,854

 

XAU/USD Fighting to Break the $1,854 Resistance

Price action in the XAU/USD daily chart appears to have been caught in a fierce battle with downward forces at the $1,854 price mark. Consequently, this has resulted in the price fluctuating between $1,854 and $1,853.80. Nonetheless, technical indicators are still showing that the above-stated resistance may be broken. The curves of the Stochastic RSI have risen above the 80 mark of the indicator. Also, the leading line is now at the 97 mark and appears to still be fairly straightened for more upside moves. Additionally, the MACD lines have recently performed a bullish crossover above the equilibrium point of 0.00. With these signs, traders may soon witness price action resuming its upside move.

XAU/USD Price Breaks $1,850 Resistance But Facing Headwind around $1,854

 

XAU/USD Headwind May Be Growing Stronger

On the 4-hour XAU/USD chart, we could see that the observed downward forces seem to be growing. Consequently, this has caused the price to move further downward to $1,853.64 in the ongoing session. This magnitude of price decline may still look very small, however, let’s further examine signs coming from trading indicators. The Stochastic RSI lines appear very sensitive, as these lines have quickly descended below the 50 mark from 80 for such a small magnitude of price fall. Also, the MACD indicator lines are very close to performing a downward crossover. Considering the signs coming from technical indicators, traders can predict that price action may not break down the support level of $1,852, even if it grows strong enough to break the $1,853.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.