XAUUSD market technical outlook

Daily chart:

Close of yesterday’s session by the bullish reversal bar, though not being a full-fledged trading setup, well signifies preparedness of the market for a slight recovery from the support zone 1718.89-1723.90 in direction of resistance 1756.11-1760.43. In this vein, probable local buy signals on junior time-frames will be of big significance.

H1-chart:

Local structure of gold has signs of a bull trend (see consecutive higher lows and higher highs). To keep this tendency the bulls need to prevent a break of the support zone 1730.68-1731.65, where the closest local low resides. In this case we would expect another upward momentum in direction 1742.17-1745.00 (black arrow).

Otherwise the price will again slide to 1726.85-1727.14 (red arrow).

Conclusions:

Main scenario: Growth from 1730.68-1731.65 in direction 1742.17-1745.00.

Alternative scenario: Decline to 1726.85-1724.14.

Trading recommendations:

Longs from 1730.68-1731.65 to 1742.17-1745.00.