XAUUSD market technical outlook

Daily chart:

Bullish pinbar was formed at the tip of the downswing yesterday being a strong buy signal. Thus we can expect development of a new upswing in direction of resistance zones 1918.58-1920.00 and 1931.20-1932.90.

H1-chart:

Local structure already has a typical for bullish trend break of the local high, but so far it’s unable to settle above the resistance zone 1908.25-1910.00. This leaves a chance for an intermediate downward correction of the pair in direction 1901.00-1903.00. In case this scenario takes place, an intraday potential of growth will be capped by resistance level 1913.89.

Conclusions:

Main scenario: Downward pullback to 1901.00-1903.00, then growth to 1913.89.

Alternative scenario: Direct growth from current levels in direction 1918.58-1920.00 with aim at further mid-term growth to 1931.20-1932.90.

Trading recommendations:

Longs to 1913.89 and 1918.58-1920.00 and 1931.20-1932.90. Optimal entry point is 1901.00-1903.00.