XAUUSD Technical Analysis

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<p class=“MsoNormal“>On the daily chart below, we can
see that after the big and fast rally caused by the Silicon Valley Bank
collapse and the fall in real yields, gold has entered a consolidation near the
previous top. </p><p class=“MsoNormal“>We can also notice that the price
is <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>diverging</a> with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/“>MACD</a>, which is generally a signal of
a loss of momentum and we can generally see a pullback afterwards. The market
started to consolidate as the data after the banking crisis has not confirmed
weakness in the economy yet, on the contrary, the economic reports have been <a target=“_blank“ href=“https://www.forexlive.com/news/sp-global-marchus-services-pmi-538-vs-505-expected-20230324/“>stronger
than expected</a>. It’s likely that we will see a major pullback in
case the data keeps beating expectations. </p><p class=“MsoNormal“>XAUUSD technical analysis</p><p class=“MsoNormal“>On the 4 hour chart below, we can
see that the recent pullback bounced from the 38.2% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level. We can also see a <a target=“_blank“ href=“https://www.forexlive.com/Education/chart-patterns-guide-20220125/“>symmetrical
triangle pattern</a>. The price can breakout on either side, so it’s
paramount to watch the economic data as an eventual breakout should lead to a
big move. Tomorrow, we have the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>US Jobless Claims</a> report and it’s likely that we
will see weakness in gold in case the data beats and strength in case the data
misses. </p><p class=“MsoNormal“>On the 1 hour chart below, we can
see more closely the symmetrical triangle consolidation. Generally, it’s better
to sit out and wait for the breakout caused by a fundamental catalyst before
entering new positions. One can easily get chopped out in such environments. </p>

This article was written by ForexLive at www.forexlive.com.

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