The XAUUSD maintained bearish momentum last week, topped at the 1393 levels, and bottomed at the 1.304 levels, now the pressure will be on the key support 1.304.
The XAUUSD will have to hold below the 1.304 levels on a weekly closing basis to push the market for further downside losses, If seen, It will target the 1180 levels, a halt is suggested, but losing this level will open the way towards the 1122 levels, further downside will aim the 1024 levels.
On the upside, a failure to hold below the 1304 levels could mean a return to the 1393 levels, If seen a breach is likely, above 1393 will look for the 1450 levels, further upside will aim the 1591 levels.
In all, as long as the 1304 levels hold on a weekly closing basis, the pair will remain biased to the upside with risk towards the 1393/1450 levels, below 1304 will reverse risks towards the 1180 levels.
In the long-term view, the XAUUSD is neutral as long as trades below the 1591 levels, sustained break above 1591 will have large bullish implication towards the 2000 levels, losing 1180 is likely to open 1000 levels.
Support and resistance levels (weekly chart) : 1024 , 1122 , 1180 (main) , 1304 , 1393 , 1450 , 1591 (main), 1670 , 1703, 1921, 2120 , 2375
Trend Strength (Weekly Chart):
Bullish: above 1591
Neutral: below 1591
Bearish: below 1304
XAUUSD – Weekly Chart