Current trend

The XAU/USD pair is actively declining for the second week in a row, adjusting to a long-term uptrend.

Currently, the price is close to the support zone of 1812.50–1799.00 (Murrey level [2/8], 61.8% Fibo retracement), the breakdown of which will allow the quotes to decline to 1750.00 (Murrey level [0/8]) and 1718.75 (Murrey level [-1/8]). The key for the "bulls" is the level of 1894.00 (38.2% Fibo retracement, the central line of Bollinger Bands); if consolidated above it, the instrument can resume growth to the levels of 1937.50 (Murrey level [6/8]) and 2000.00 (Murrey level [8/8]).

Technical indicators show the formation of a downtrend: Bollinger Bands are reversing down, MACD is increasing in the negative zone, and Stochastic has entered the oversold zone, but is directed horizontally. Under these conditions, the decline in quotes is likely to continue.

Support and resistance

Resistance levels: 1894.00, 1937.50, 2000.00.

Support levels: 1799.00, 1750.00, 1718.75.

Trading tips

Short positions could be opened below 1799.00 with targets at 1750.00, 1718.75 and stop-loss at 1830.00. Implementation period: 5-7 days.

Long positions may be opened above 1894.00 with targets at 1937.50, 2000.00 and stop-loss at 1865.00.