Having reached a local 4-month low of 1787.00 in mid-May against the backdrop of a sharp strengthening of the dollar, XAU/USD then resumed growth, attempting to return to the zone of a long-term bull market, above the resistance levels of 1855.00 (200 EMA on the daily chart), 1866.00 (144 EMA on the daily chart).

However, so far the attempt to break through these resistance levels has been unsuccessful: XAU/USD has fallen again—to the support level of 1832.00 (23.6% Fibonacci level retracement to the growth wave since December 2015 and the level of 1050.00).

As of this writing, XAU/USD it is trading near 1855.00, which is a key resistance level (200 EMA on the daily chart). Its breakdown, repeated retest of the resistance level of 1866.00, and consolidation in the zone above the resistance level of 1875.00 (local resistance level and 50 EMA on the daily chart) will confirm the return of XAU/USD to the long-term bull market zone.

The alternative scenario proposed in our previous review dated 05/23/2022 remains in effect and will be associated with a breakdown of the support level at 1832.00 (23.6% Fibonacci retracement to the growth wave from December 2015 and the mark of 1050.00) and a retest of support levels at 1800.00, 1785.00. Their breakdown will push XAU/USD to further decline towards the key support levels of 1738.00, 1700.00. The breakdown of the long-term support level at 1682.00 (200 EMA on the weekly chart and the 38.2% Fibonacci level) will finally break the long-term bullish trend of XAU/USD.

Support levels: 1848.00, 1832.00, 1800.00, 1785.00, 1742.00, 1700.00, 1682.00

Resistance levels: 1855.00, 1866.00, 1875.00, 1900.00, 1918.00, 1958.00, 2000.00, 2070.00, 2075.00

Trading Tips

Sell Stop 1842.00. Stop-Loss 1871.00. Take-Profit 1832.00, 1800.00, 1785.00, 1742.00, 1700.00, 1682.00

Buy Stop 1871.00. Stop-Loss 1842.00. Take-Profit 1875.00, 1900.00, 1918.00, 1958.00, 2000.00, 2070.00, 2075.00