XAU/USD in a Range possibly testing the 1933 level
The price of gold currently indicates a bearish trend while consolidation is around the $1925 price level. Additionally, the price of gold is currently situated below both the 200-day and 50-day moving averages. However, it’s important to note that the market is within a bullish range zone, suggesting potential for price movements in both directions.
Scenario 1 (Bearish Outlook): In this scenario, there is a possibility that the price of gold may continue to decline from its current level. The first support level to watch is at $1919. If bearish momentum persists, the price could further drop to the $1917 level. Should the selling pressure continue, the key support level to keep an eye on is $1908, which acts as a significant support level.
Scenario 2 (Bullish Outlook): Conversely, if the price of gold reverses its current downward trajectory, it may rise from its current level. The initial resistance level to watch for is $1927. If this level is breached, the main resistance level to consider is $1933, which serves as a major resistance point.
Short-Term Momentum: Currently, the short-term momentum of the gold market is bearish but consolidating. This means that while there is downward pressure, the market is also experiencing periods of stability or consolidation, indicating potential indecision among traders.
Key Levels to watch are 1908, 1924,1933,1911
| Levels | Support | Resistance |
|---|---|---|
| Level 1 | 1921.50 | 1927.50 |
| Level 2 | 1915.50 | 1933.50 |
| Level 3 | 1908.50 | 1937.50 |