Missed gold’s breakout above a key resistance zone?
This precious metal could still be in for a correction to the world of interest on the 4-hour timeframe!
Take a take a look at these potential support areas marked by the Fibonacci retracement tool.
Gold (XAU/USD) 4-hour Forex Chart by TradingView
Protected-haven flows have lifted gold past the strong resistance zone across the $2,700 mark, taking all of it the best way as much as the following ceiling near R2 ($2,762.87) before pausing on its climb.
Investors still seem pretty anxious about Trump’s first few days in office, because the newly sworn-in President has been threatening higher tariffs left and right, keeping global trade jitters present.
Can the valuable metal extend its rallies as more traders flock to safety?
Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. Should you haven’t yet done your homework on gold and the U.S. dollar, then it’s time to ascertain out the economic calendar and stay updated on each day fundamental news!
An ascending trend line has been connecting XAU/USD lows for the reason that start of this 12 months, and it looks like a fast pullback to this support zone could follow.
This is true according to the 61.8% Fibonacci retracement level and the previous resistance at $2,700, so look out for a pickup in buying interest at this region. A shallow pullback could already find buyers on the 50% Fib near R1 ($2,733.01) or the 38.2% Fib at $2,734.23 so keep your eyes peeled for reversal candlesticks at these levels, too!
Note that the 100 SMA crossed above the 200 SMA to suggest that the uptrend is more more likely to resume than to reverse. If any of the Fibs are capable of keep losses in check, gold bulls could set their sights back on the upside targets on the swing high or to fresh ones at R3 ($2,800.96).
Alternatively, a break below the Fibs and trend line could suggest that a reversal from the short-term uptrend is due. Be careful for a drop to the following bearish targets at S1 ($2,665.06) near the dynamic support on the moving averages then S2 ($2,626.97) on this case.
Whichever bias you find yourself trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that might influence overall market sentiment!