FxNews—Gold is in an uptrend, trading above the 25- and 50-simple moving averages. As of writing, the XAU/USD pair trades at approximately $2,460, slightly above the 25-period simple moving average, a level backed by the 23.6% Fibonacci and the ascending trendline.
The 4-hour chart below demonstrates the Gold’s price, the key support and resistance levels, and the technical tools utilized in today’s analysis.
XAUUSD Technical Analysis – 18-July-2024
The technical indicators in the 4-hour chart suggest that the primary trend is bullish, but the bull market is weakening.
- The price is above the 25, 50, and 100-period simple moving average, demonstrating a robust uptrend.
- The awesome oscillator value is declining, showing 31 in the description with red bars above the signal line. This decline in the AO value means the uptrend weakens, and the market might step into a consolidation phase.
- The relative strength index value is 61, returned from the overbought territory, signifying the downtrend gains momentum.
- The stochastic oscillator value aligns with the RSI and is declining, with the %K period at approximately 66. This signals that the market is not oversold and that the consolidation phase can resume the lower support levels.
XAUUSD Price Forecast – 18-July-2024
The immediate support is the 23.6% Fibonacci at $2,438, aligning with the 25-period SMA and the ascending trendline. If the bears (sellers) push the price below this level, the consolidation phase will likely extend to the 38.2% Fibonacci retracement level at $2,410.
Furthermore, if the selling pressure exceeds $2,410, the primary trend should be considered bearish, and the bear’s road to the 50% Fibonacci could be paved.
XAU/USD Bullish Scenario
The key resistance level is the July 17 high at $2,483. If the bulls (buyers) drive the price above this barrier, the uptrend will likely continue, and the next resistance level will be at $2,500.
The key resistance is at $2,410. The bullish outlook should be invalidated if the price dips below the key resistance.
Gold Key Support and Resistance Level – 18-July-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: $2,438 / $2,419 / $2,388
- Resistance: $2,483 / $2,500
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.
