TA of the Day: XAU/USD Minor Pullback?

Is gold (XAU/USD) Just a slight decline or will it continue to decline?

you welcome in Teaching Assistant for Today (Tauted)!

Here is the 1 hour chart:

Using pure technical analysis, let’s analyze gold.

Technical analysis of XAU/USD (Gold) on the hourly chart

Exponential Moving Averages (EMAs):

• 200 exponential moving averageIt is located at the level of 2356.13. The current price is above This level indicates a long-term uptrend. The slope of the 200 EMA is rising, providing further evidence of an uptrend.
• 50 exponential moving averageIt is located at the level of 2369.55. The price is also above This level reinforces the uptrend. The slope of the 50 EMA is rising, indicating a clear uptrend.
• 10 Exponential Moving Average:Located at 2373.14. The price is a bit high. less This level indicates a possible short-term pullback. The 10 EMA is sloping slightly downwards, indicating a short-term consolidation or a slight pullback.

If you are new to EMAs, read our Pipsology School lessons on Exponential Moving Averages.

MACD:

• MACD line and signal lineThe MACD line (blue) is below the signal line (orange), which usually represents a bearish signal.
• HistogramThe chart shows negative values ​​but is decreasing, indicating that the short-term bearish momentum may be weakening. However, consolidation or even a reversal is still possible if the chart remains red.

If you are new to the MACD indicator, read our Pipsology School lessons on the MACD indicator.

Key Notes

Price movement:

• latest trendThe price was in an upward trend, making higher highs and higher lows.
• Swipe backRecently, the price has shown signs of a pullback from its highs near 2384, and is currently trading around 2370.85.
• SupportsThe price found support near the 50 EMA (2369.55) during previous pullbacks, indicating that this level is important for the short-term trend.
• resistanceThe recent high near 2384 appears to be forming resistance.
• MergeIt seems that there is a consolidation phase where the price is fluctuating. between 10 EMA and 50 EMA.

Support and resistance levels:

• SupportsImmediate support at the 50 EMA (2369.55) and stronger support at the 200 EMA (2356.13).
• resistance:Around the recent high near 2384. A break above this level could indicate a continuation of the uptrend.

Possible trade scenarios

The following trading scenarios are provided for educational purposes only. Since they do not include full risk management practices, they are not intended to serve as actual trading recommendations, but rather as food for thought to help you generate your own trading idea.

Long bias:

• Point of ConsiderationConsider entering a buy position if the price finds support near the 50 EMA (2369.55) or the 200 EMA (2356.13) and shows signs of a bounce or a bullish candlestick pattern.
• Point of cancellationConsider a stop loss below the 200 EMA around 2356.13 to manage risk.
• potential targetWe expect a move towards the recent high at 2384 and possibly higher if the uptrend continues.

Short bias:

• Point of ConsiderationConsider entering a sell position if the price retests the 10-period EMA (2373.14) but fails to break above it and shows signs of bearish momentum, such as a strong bearish candlestick pattern or the MACD line crossing below the signal line.
• Point of cancellationConsider placing a stop loss above the recent high at 2384 to manage risk. This level is crucial as a break above it would invalidate the bearish setup.
• potential targetThe initial target could be the 50 EMA (2369.55) or the 200 EMA (2356.13). If the downward momentum continues, look for further declines towards 2340 or lower.

TAOTD Summary

• directionThe trend was up, but the current pullback and negative MACD histogram indicate a possible consolidation or reversal.
• Main levelsSupport at 2369.55 and 2356.13 and resistance at 2384.
• PaidMACD line below signal line and red histogram indicates caution.
• EMA Slope AnalysisThe upward slopes on the 200 and 50 EMAs indicate sustained upward momentum, while the slight downward slope on the 10 EMA indicates a short-term pullback.