Gold prices have been under bearish pressure for quite some time now, and the overall momentum of the XAU/USD chart remains bearish. There are several factors contributing to this bearishness, such as the downtrend being reinforced by a major descending trend line.
XAU/USD is currently bullish. The chart analysis identifies that the price may potentially make a bullish continuation towards the 1st resistance level. The 1st support level is identified at 1913, which is considered to be an overlap support and at the 23.60% Fibonacci retracement level.
XAU/USD is bearish, and the price could potentially make a bearish reaction off the first resistance level at 1937.00 and drop to the first support level at 1890.00.
The first support level at 1890.00 is an overlap support level coinciding with a 38.20% Fibonacci retracement, which may provide strong support for the price if it drops
Price is currently lingering between our 1st support and resistance levels. If the price were to reverse from our 1st resistance at 1923, which is an overlapping resistance level, it could drop to our 1st support at 1890, which is an overlap support level along with the 23.6% Fibonacci retracement.
Price is now testing a major overlap resistance at 1913 which is slightly below the 78.6% short term Fibonacci retracement. A break of this level could suggest a move up to 1962 is possible – which is the recent swing high resistance.
