XAU / USD dropped significantly last week amid strengthening of the dollar after the Fed meeting ended last Wednesday (see also "Fundamental Analysis and Recommendations")
In a continuous decline over the past 3 weeks, XAU / USD declined 8.6% from earlier this month 5-month high near 1916.00 and reached a local 7-week low near 1761.00 last Friday. Nevertheless, against the backdrop of rising inflation and if the Fed continues to remain neutral, the XAU / USD pair has the potential to resume growth, and the first signal to resume long positions will be a breakdown of the short-term resistance level of 1788.00 and consolidation in the zone above 1790.00.
In the alternative scenario, XAU / USD will strengthen the downward dynamics, and the downward correction may continue inside the downward channel on the weekly chart, the lower border of which passes through the support level of 1645.00.
Support levels: 1761.00, 1685.00, 1645.00, 1580.00, 1560.00
Resistance levels: 1788.00, 1812.00, 1822.00, 1835.00, 1847.00, 1916.00, 1963.00, 1976.00, 2000.00, 2010.00
Trading recommendations
Sell Stop 1760.00. Stop-Loss 1791.00. Take-Profit 1700.00, 1685.00, 1645.00, 1580.00, 1560.00
Buy Stop 1791.00. Stop-Loss 1760.00. Take-Profit 1812.00, 1822.00, 1835.00, 1847.00, 1916.00, 1963.00, 1976.00, 2000.00, 2010.00
*) XAU/USD: Current Fundamental Analysis and Market Expectations
**) the most up-to-date "hot" analytics and trading recommendations (including entries into trades "by-the-market") - https://t.me/fxrealtrading
