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XAUUSD Technical Analysis - XAUUSD Trading: 2020-08-19
Gold Technical Analysis Summary
Above 2014.51
Buy Stop
Below 1974.96
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Sell |
| Donchian Channel | Buy |
| MA(200) | Buy |
| Fractals | Buy |
| Parabolic SAR | Buy |
Gold Chart Analysis
Gold Technical Analysis
On the 4-hour timeframe XAUUSD: H4 is retracing up above the 200-period moving average MA(200) after retreating to 3-week low a week ago. We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 2014.51. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 1974.96. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (1974.96) without reaching the order (2014.51) we recommend cancelling the order: the market sustains internal changes which were not taken into account.
Fundamental Analysis of Precious Metals - Gold
Investors are awaiting a Congress agreement on new coronavirus stimulus package after talks broke down last week. Will the XAUUSD continue rising?
Current technical setup is bullish for gold. Monetary stimulus programs of central banks all over the globe struggling to support their economies as coronavirus lockdowns caused sever downturns in economic activities boost demand for gold. Increasing global money supply is bullish for XAUUSD. However the recent rally in XAUSD paused as US lawmakers couldn’t agree on new round of federal stimulus funding. And US House of Representatives Speaker Nancy Pelosi said yesterday that Democrats in Congress were willing to cut their coronavirus relief bill in half to get an agreement on new legislation Republicans. Lower than expected new US monetary stimulus package is a downside risk for XAUUSD.
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