Gold Trading Strategy ( XAUUSD ) 18/4/2023

Gold trades with a sour tone on Monday, with XAU/USD hovering around 1,990 a troy ounce after falling to 1,981.16 at the beginning of the American session.

The daily chart for XAU/USD shows that the risk of a continued slide increased. The pair is currently struggling to hold above a now flat 20 Simple Moving Average (SMA), while the Relative Strength Index (RSI) indicator heads south at around 54, reflecting persistent selling interest. At the same time, the Momentum indicator remains flat just above its midline, while the longer moving averages are heading north far below the current level. The ongoing corrective decline could turn into a steeper fall on a break below the 1,940 price zone, a strong static support area.

The pair is bearish according to technical readings in the 4-hour chart. Gold has spent the day below a mildly bearish 20 SMA and currently battles a flat 100 SMA. The 200 SMA keeps heading north well below the current level, but technical indicators head firmly lower within negative levels, reflecting bears’ dominance.

Support levels: 1,976.95 1,964.30 1,949.70

Resistance levels: 2,003.50 2,014.50 2,028.30

Trading Recommendation :

SELL XAUUSD 2000 - 1998

Stop Loss : 2005

Take profit 1: 1995
Take profit 2: 1990
Take profit 3: 1980

BUY XAUUSD 1981 - 1980

Stop Loss : 1979

Take profit1 : 1988
Take profit 2: 1990
Take profit 3: 1996

Note: Always set Stop Loss and Takeprofit to ensure safety in trading