XAUUSD is testing its support where we expect to see a nice bounce.
Buy above 1285.81. Stop loss 1278.29. Take profit at 1301.99.
Reason for the trading strategy (technically):
XAUUSD dropped nicely to our support at 1285.81 (horizontal swing low support, 61.8% Fibonacci retracement, 61.8% Fibonacci extension) where we look to buy on weakness. We expect price to rise to its resistance at 1301.99 (horizontal pullback resistance, 23.6%, 38.2% Fibonacci retracement).
Stochastic (55,5,3) is also seeing a bullish divergence and is approaching our support where a bounce off this level will be a good precursor for a potential rise in price.
Buy above 1285.81. Stop loss 1278.29. Take profit at 1301.99.
Reason for the trading strategy (technically):
XAUUSD dropped nicely to our support at 1285.81 (horizontal swing low support, 61.8% Fibonacci retracement, 61.8% Fibonacci extension) where we look to buy on weakness. We expect price to rise to its resistance at 1301.99 (horizontal pullback resistance, 23.6%, 38.2% Fibonacci retracement).
Stochastic (55,5,3) is also seeing a bullish divergence and is approaching our support where a bounce off this level will be a good precursor for a potential rise in price.