About time to trade gold (XAUUSD)

gold

Hey trader, hope everything is going well on your end…

What do you think about the market so far this week?

From the way I see it, its been difficult to find good opportunities. Most currency pairs have been trading in a very tight range, not well defined, etc.

We’ve got to be patient though, I’ve learned through experience that, our job as traders is not to be in the market every day, but to be in the market when the odds are on our favor.

Even when sometimes that means to be in the sidelines for a few days (or even weeks).

That’s the reason we need to make the most when the market has clear conditions:

  • Take all your signals
  • Increase the trading size when the market moves on your favor and gives you new opportunities
  • Keep trailing your stop, but giving the market enough room to breath
  • Trade only the currency pairs that have a great profit potential, etc.

What’s your take?

Ok, now to the XAUUSD (gold) analysis

XAUUSD Long Term Analysis (gold)

One of the things I like about the XAUSUD daily chart is that it has a pretty clear support level:

XAUUSD 1D

Its clear that the market has been rejected from that level… so it is likely to continue its way up…

Now the tricky part…

The resistance level isn’t that clear… some will say there is a bearish trendline, but I dont like to use them as they are somewhat subjective, you can draw them and place them to your liking, etc.

So I’m going to stick to regular support and resistance levels.

With that being said, we can play it safe and use 1320 as the next LT resistance level, which comes from the previous rejection…

Now we just need to fin a good entry level on the short term charts…

Your turn

Are you currently trading the XAUUSD? Whats your opinion about it?

What other currency pairs are you monitoring/trading?

Share your thoughts!

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Eric Aroh

    The LT S&R (@1D candlestick chart) show support at 1185 and resistance at 1310; however, the market trend is currently bearish, having bounced of resistance at 1254. The market condition (1H chart) shows bearish condition but bounded by 1185 (support) and 1310 (resistance). I will wait to see the following:

    (1) current bearish condition breaks through 1234 has potential to continue to 1185 (I will go short).

    (2) market retraces and breaks through 1252, hence potential to rise to 1310 – I will then look for LONG opportunities. This second scenario looks more probable of happening since there have been TWO rejections already @ 1234. It will likely be rejected the third time. However, one lesson I have learnt is not to second guess the market; so I will wait, and follow the market.

    Trade plan: wait for a breakthrough either @ 1234 (and look for SHORT opportunities) or @ 1252 (and look for LONG opportunities). The market will show me what to do.

    Eric

  • richard

    I am looking for a uptrend continuation from 1240 and a buy on a break above 1250 as a uptrend price action signal.

  • tp

    I had the impression that the current level is still testing the resistance. Correct me?

  • Carlos

    I enter to this for long since last week. For me its seems that is still going up. I start to look the gold thanks to you.
    Thanks Raul

    • Raul Lopez

      Good luck to us!

  • zamile

    Hi Raul, I also think it will test 1256 only then we will know the direction. I have also been watching the USDJPY last week it formed a bullish pin( on a weekly chart) at 105.40 support and yesterday formed a bullish pin bar on a daily chart at 106.80. What do you think of long opportunities with resistance back at 110.05?

    • Raul Lopez

      Thank you Zamile! I hope it continues its way up…

      I’m not currently monitoring the USDJPY, I dont feel confident in the way its been trading lately…

      Good luck!

  • Muhammad Ali Awan

    Hi Raul,
    I think it will bounce back from 1250, and it will touch 1180.

    • Raul Lopez

      Thank you for your feedback Muhammad!…

      Based on what?

      Thanks again!

  • Varahala Babu

    hi raul…can we get rid of 1250.00 level ( resistance level )…because right now it was trading at that level…can you put the entry level and stop loss levels like you put in the previous trade setup`s in the free analysis…

    • Raul Lopez

      Hello Varahala,

      Yes, that level is not an important one, the market already broke through it twice, so there is no point on using it if the market doesnt think its important…

      About the entry, you can use whatever system you are using to look for your entries!

      Good luck!