XAUUSD market technical outlook

Daily chart:

Downward correction proved not only deeper than a regular technical pullback, but also drove to renewal of the local low that fully formed a downswing. Thus bulls have a good condition for an attempt to attack in direction of the resistance zone 1918.58-1920.00 and 1931.20-1932.93.

H1-chart:

Local structure got a bearish tone and at this moment it is forming trending downswing. This increases a threat of the fall under the recent low (1894.35).

Thus we can consider an upward reversal from 1894.35-1897.42 if we get here buyers’ weakness and activity of sellers. At the same time we shouldn’t expect growth above the resistance zone 1910.58-1914.23 - most likely we’ll leave for the weekend with the price between these two zones.

Conclusions:

Main scenario: Decline to 1894.30-1897.42, then growth to 1910.58-1914.23.

Alternative scenario: Drop under 1894.30 and further decline of the quotes to 1890.00 and 1885.00.

Trading recommendations:

Longs from 1894.30-1897.42 to 1910.58-1914.23.