XAUUSD Weekly Technical Outlook
The bearish momentum seen on the XAUUSD market in June 2018 has waned. On the monthly time frame, price action printed an ambivalent candlestick at a support zone around the 1221.00 area and in confluence with an ascending trendline (red) from the low of November 2015, which is in play as support. A significant breakdown of the trendline is likely to expose the next horizontal support around the 1148.30 area; which of course is too ambitious a target at the moment. There will surely be a series of sideways operation and northward pullbacks before the target is taken by bears. In fact, bulls may attempt a retest of the minor resistance around the 1269.20 area.
On the weekly time frame, the XAUUSD market is operating in a triangular consolidation channel (red). Last week, a pinbar was printed at the channel support and hinted at a bullish rejection of the area. We should also note that the lower tail of the pinbar entered a horizontal support that has held as support since July 2017. However, the 200-pip tail of the pinbar may witness an interest by bears. Thus, we may see some sideways operation in the area or a northward pullback of price action this week. The 1260.00/1270.00 zone is likely to be a target of any bullish drive but a bearish test of the pinbar tail around the 1221.00 area can not be ruled out. What happens on Monday this week regarding price action will be of interest. For example, a retest of the pinbar tail is likely to be a clue for a buy trade if a bullish setup is given around the 1221.00 area.
Price action on the daily time frame printed a bullish pinbar on Thursday last week around a major horizontal support and it saw a follow-through on Friday with a bullish engulfing candlestick. We are likely to see a bullish continuation this week. A likely target of bulls is the former support zone around 1263.30/1285.10 (bound by magenta horizontal lines). We should also be aware of the descending trendline (black) from the high of May 2018, which may act as resistance.
I am bullish XAUUSD.
I may be wrong. Trade safe and prosper.
KP
The bearish momentum seen on the XAUUSD market in June 2018 has waned. On the monthly time frame, price action printed an ambivalent candlestick at a support zone around the 1221.00 area and in confluence with an ascending trendline (red) from the low of November 2015, which is in play as support. A significant breakdown of the trendline is likely to expose the next horizontal support around the 1148.30 area; which of course is too ambitious a target at the moment. There will surely be a series of sideways operation and northward pullbacks before the target is taken by bears. In fact, bulls may attempt a retest of the minor resistance around the 1269.20 area.
On the weekly time frame, the XAUUSD market is operating in a triangular consolidation channel (red). Last week, a pinbar was printed at the channel support and hinted at a bullish rejection of the area. We should also note that the lower tail of the pinbar entered a horizontal support that has held as support since July 2017. However, the 200-pip tail of the pinbar may witness an interest by bears. Thus, we may see some sideways operation in the area or a northward pullback of price action this week. The 1260.00/1270.00 zone is likely to be a target of any bullish drive but a bearish test of the pinbar tail around the 1221.00 area can not be ruled out. What happens on Monday this week regarding price action will be of interest. For example, a retest of the pinbar tail is likely to be a clue for a buy trade if a bullish setup is given around the 1221.00 area.
Price action on the daily time frame printed a bullish pinbar on Thursday last week around a major horizontal support and it saw a follow-through on Friday with a bullish engulfing candlestick. We are likely to see a bullish continuation this week. A likely target of bulls is the former support zone around 1263.30/1285.10 (bound by magenta horizontal lines). We should also be aware of the descending trendline (black) from the high of May 2018, which may act as resistance.
I am bullish XAUUSD.
I may be wrong. Trade safe and prosper.
KP
Do your homework, follow the footprints of smart money