18.12.2022 XAU/USD Technical analysis (Daily timeframe)

XAU/USD

Gold (XAU/USD) just entered the possibility of bigger correction. Price action shows, that on Friday price tested the broken trendline. This break through is confirmed by higher volumes and lower volumes on the pullback. There is a bearish divergence on RSI and MACD is also declining. Bears are under 0 and they’re gaining power. So, we have lot of short indications. I’m also short bias. 

There can be a great opportunity to enter short positions on Monday open, because we can expect that broken trendline will hold the price under. For those who trade bigger stop-losses I would suggest to put it above the upper resistence level (marked on the chart). 

We can expect high volatility during this week’s news. Don’t forget to follow a strong correlation between XAU/USD and USDX. If US economy appears stronger than last reported, US dollar will strenghten and price of the gold will find new lows and vice versa.

Wish you great profits.

written by Filip Lemon