XAUUSD (GOLD) Chart Analysis
Synopsis: In this analysis, we'll examine the daily chart data for XAU/USD (GOLD) and provide insights into potential entry and exit points for trading on October 7, 2023, in the US session.
Daily Chart Analysis: Before delving into the details, let's take a moment to analyze GOLD's status before the release of the NFP (Non-Farm Payrolls) data. We'll also provide a special report just before the NFP data.
Key Observations and Trade Points
Chart Reference:
Gold is currently showing a pattern of double bottoms and higher lows, indicating a retracement.
It has achieved higher highs, suggesting potential bullish momentum.
Critical support levels to watch are at 1820-1818. A breach below this zone could lead to further bearishness, with 1814 as a key target.
On the upside, Gold briefly touched 1826 but retraced. However, higher lows suggest a possible reversal.
Entry and Exit Points:
Entry Points:
Consider buying if Gold stays above 1826.
Confirm the bullish trend by breaching 1830-1832 levels.
Look for further resistance at 1834-1836 and 1840.
Exit Points:
Set a trailing stop loss of $2 if buying at 1826, ensuring protection until 1834-1835 is reached.
On the downside, consider selling at 1815, with initial targets at 1818, 1811, and 1815.
If Gold remains below 1810, be cautious as it could potentially drop to 1800 or below.
Intraday Chart Analysis:
2-Hour Chart: Watch for reversals from current levels, as it could lead to bullish momentum towards 1826 and beyond (1833).
3-Hour Chart: The focus is on breaking past 1820-1818 for bullish potential. Keep an eye on the previous candle's highs as well.
4-Hour Chart: Higher highs have started to form. Gold may find support around 1818 or 1814. Monitor the 20-period moving average for potential signals.
Conclusion: While Gold has exhibited signs of a retracement, the breach of key resistance levels at 1830-1832 and 1834-1836 could pave the way for a bullish rally. Conversely, staying below 1810 may bring further bearishness. As always, trade cautiously, set stop losses, and be prepared for market volatility.
Disclaimer: Trading involves risk, and the information provided here is for educational purposes only. It is not investment advice. Make trading decisions based on your own analysis and risk tolerance.
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