XAU/USD: Technical Analysis and Trading Recommendations_11/12/2021

 
 
 
 
 
 
 

As we noted above, the XAU / USD pair rose sharply in the week of November 8-14. Since the beginning of the month, the increase has made more than 3.5%. The growth of the pair accelerated after the publication of CPI indices, which indicated a sharp rise in inflation in the United States. The consumer price index jumped 6.2% in October (on an annualized basis), the strongest growth in more than 30 years. Gold is a traditional defensive asset, including against inflationary risks, and investors have preferred it in the current situation.

XAU/USD W Chart

Above the key support levels 1800.00, 1797.00 (ЕМА200 on the daily chart), 1793.00 (ЕМА50 on the weekly chart), XAU / USD remains in the bull market zone, and the breakdown of the local resistance level 1868.00 (highs reached this week) will create preconditions for further growth of the pair.

XAU/USD D Chart

In an alternative scenario, corrective decline will continue to the important short-term support level 1823.00 (ЕМА200 on the 1-hour chart). Its breakdown may trigger a deeper decline to the key support levels 1800.00, 1797.00, 1793.00.

XAU/USD H1 Chart

More distant targets of decline are located at support levels 1685.00 (Fibonacci level 61.8% of the correction to the wave of growth since November 2015 and the level of 1050.00), 1615.00 (ЕМА200 on the weekly chart). A breakdown of the support level 1560.00 (50% Fibonacci level) will increase the risks of the XAU / USD transition into a long-term downtrend.

Support levels: 1850.00, 1835.00, 1823.00, 1814.00, 1800.00, 1797.00, 1793.00, 1759.00, 1725.00, 1685.00, 1615.00, 1560.00

Resistance levels: 1868.00, 1900.00, 1916.00, 1963.00, 1976.00, 2000.00, 2010.00

Trading recommendations

Sell Stop 1840.00. Stop-Loss 1863.00. Take-Profit 1835.00, 1823.00, 1814.00, 1800.00, 1797.00, 1793.00, 1759.00, 1725.00, 1685.00, 1615.00, 1560.00

Buy Stop 1863.00. Stop-Loss 1840.00. Take-Profit 1868.00, 1900.00, 1916.00, 1963.00, 1976.00, 2000.00, 2010.00