FxNews—Gold downtrend from $2,368 has eased after the price dipped below the 61.8% Fibonacci at $2,316 (current price). The robust bearish wave in the gold market has driven the stochastic oscillator into the oversold territory, meaning the U.S. Dollar is overvalued against the yellow metal.
The XAU/USD 4-hour diagram below demonstrates the Fibonacci retracement levels and the key technical indicators and trendlines utilized in today’s forecast.
XAUUSD Technical Analysis – 26-June-2024
As of this writing, the bulls are testing the steep descending trendline, while other technical indicators, except the stochastic oscillator, suggest the downtrend will likely prevail.
- The gold price is below the 25 and 50-period simple moving averages, meaning the trend is bearish.
- The awesome oscillator value is -15 and declining. The red indicator bars below the signal line suggest the bear market prevails.
- The relative strength index indicator is below the median line, signifying the bear market has more momentum.
XAUUSD Price Forecast – 26-June-2024
From a technical standpoint, the gold market is oversold in the short term due to the stochastic %K line hovering below the 20 level. This means the current bearish trend might ease, and the price could rise to test the upper resistance levels.
If the bulls (buyers) close and stabilize the Gold price above the descending trendline and the 61.8% Fibonacci at $2,316, the uptick momentum began on $2,302 will likely aim for the 50% Fibonacci at $2,326. Furthermore, if the buying pressure exceeds $2,326, the 38.2% Fibonacci at $2,336 will be the next barrier.
The $2,309 is the immediate resistance that supports the bullish strategy. The bullish scenario should be invalidated if the price dips below the immediate resistance.
XAU/USD Bearish Scenario
The immediate resistance is at $2,302. If the Gold price dips below this, the downtrend that began at $2,368 will likely aim for the 78.6 Fibonacci level at $2,302. Likewise, if the selling pressure exceeds $2,303, the June 10 low will be the next supply zone.
Gold Key Support and Resistance Levels – 26-June-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: $2,309 / $2,302 / $2,284
- Resistance: $2,326 / $2,336
Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.