XAUUSD market technical outlook

Daily chart:

Buyers confirmed good prospects of gold’s growth having closed yesterday’s session by the bullish inside bar - a strong buy signal. Thus we can expect a start of new upswing in direction of the resistance zone 1920.00-1930.00.

H1-chart:

Local structure is forming corrective downswing. Supposedly, active demand for the asset will exhibit support zone 1900.00-1903.69 (black trajectory).

Scenario of growth might be cancelled in case the price moves below the round level 1900.00. The target of bears would be 1889.34-1891.70 (red arrow).

Conclusions:

Main scenario: Testing of 1900.00-1903.69, then growth in direction 1920.00-1930.00.

Alternative scenario: In case the price goes below 1900.00, we expect a decline to 1889.34-1891.70 followed by an upward bounce.

Trading recommendations:

1. Longs from 1899.00-1903.69 to 1920.00-1930.00.

2. Shorts reckoning on break of 1900.00 to 1889.34-1891.70.

3. Longs from 1.889.34-1891.70 to 1900.00.