Market Recap
Gold prices have shown mixed momentum in recent days, with technical analysts predicting a bearish correction in the short term. For those looking to capitalize on XAU/USD volatility, Exness remains a top choice for forex trading, offering competitive spreads and robust analytical tools.
Current Price Action and Trends
Price Level:
Gold is currently trading near $3,367.62 per ounce, with bearish signals emerging for June 21-22.
Trend:
A short-term bearish reversal is forming, contrasting with the medium-term uptrend still supported by some analysts.
Key Levels:
- Support: $3,355 (critical bearish correction target).
- Resistance: $3,499.88 (recent April peak).
- Long-Term Target: $2,799.00 by year-end, though some models suggest volatility could drive prices toward $2,000.
Trading Strategy for XAU/USD
Entry Points
- Pullback Entry: Await a retest of $3,355 support. Enter long if bullish reversal patterns form (e.g., hammer candlesticks).
- Breakout Entry: Trade short-term bearish momentum on a confirmed breakdown below $3,355.
Risk Management
- Stop Loss (SL): Place 15-20 pips below entry for longs; above $3,360 for shorts.
- Take Profit (TP):
- For Longs:
- TP1: $3,430 (first resistance).
- TP2: $3,499.88 (key resistance).
- For Shorts:
- TP1: $3,335 (immediate support).
- TP2: $3,300 (psychological level).
- For Longs:
Key Indicators to Monitor
- RSI: A drop below 40 on intra-hour charts may signal oversold conditions.
- Moving Averages: Track the 50-day SMA ($3,280) and 200-day SMA ($2,820) for trend confirmation.
Rationale for Strategy
Bullish Drivers: Geopolitical tensions and inflationary pressures may reignite demand.
Volatility: Short-term bearishness from technical corrections clashes with structural bullishness, creating range-bound opportunities.
Final Advice
Initiate Trades Post-Confirmation: Wait for the close of London/US sessions to gauge momentum. Stay nimble – intraday volatility is expected. Prioritize stops to protect capital, using Exness’ flexible leverage for controlled risk. Monitor real-time news; U.S. interest rate decisions could disrupt trends.
Always trade within your risk tolerance. The volatility of XAU/USD demands strict discipline.
