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XAUUSD, Fibonacci Analysis

10/5/2022 2:44 PM


On the four-hour chart, the price of the trading instrument reached four-week highs around 1725.75, and then began to correct downwards with targets at 1700.00 (retracement 23.6%) and 1684.00 (retracement 38.2%). The 1725.00 mark (retracement 0.0%) remains key for the "bulls". In case of its breakout, a serious price increase will be able to continue.

Technical indicators show opposite signals: the Bollinger Bands are directed upwards, confirming the presence of a short-term upward trend, but the MACD histogram is decreasing in the positive zone, and the Stochastic has left the overbought zone, not excluding the development of a decline. 


On the daily chart, the price reached 1724.50 (retracement 23.6%), but it cannot break above it yet. If successful, growth is possible to the levels of 1765.00 (the area of intersection with the lines of the descending fan 38.2%) and 1786.00 (retracement 38.2%). Otherwise, the downward dynamics will resume to the area of 1680.00 (the middle line of the Bollinger Bands) and 1623.00 (retracement 0.0%).

Technical indicators do not give a single signal: the Bollinger Bands are reversing horizontally after a decline, the Stochastic has entered the overbought zone and may reverse downwards in the near future, and the MACD histogram is decreasing in the negative zone. 

In general, in the near future, price reduction seems to be a more likely scenario. Its targets may be 1700.00 (retracement 23.6% for H4) and 1680.00 (retracement 38.2%, H4; the middle line of the Bollinger Bands, D1). If the quotes consolidate above the 1725.75 mark (retracement 0.0%, H4), growth will resume to the 1765.00 marks (38.2% descending fan line, D1) and 1786.00 (retracement 38.2%, D1). 

Resistance levels: 1725.75, 1765.00, 1786.00. | Support levels: 1700.00, 1680.00, 1623.00.

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