Gold (XAUUSD) trading commentary on 22/3/2023

Spot gold held firm on Tuesday, continuing to retreat from recent peaks of $2,009.77 to trade below $1,950. Bright metals aim to regain early Asian momentum, although better mood capped US Dollar gains.

The XAU/USD pair trades around $1943 and the correction continues to fall. However, the pair is holding above the 38.2% retracement level of the most recent rally measured between $1,809.38 and $2,009.77 at $1,932.65. Technical indicators retreated from overbought levels with a steep downward slope but still above their moving averages. At the same time, the bright metal develops well above the bullish moving averages, with the 20 Simple Moving Average (SMA) maintaining its upward slope at around $1868.30. The risk of a sharper drop increases below the aforementioned Fibonacci support.

The risk is tilted to the downside in the near term and according to the 4-hour chart. XAU/USD broke below the 20 SMA, losing some of its bullish power. However, the longer moving averages maintain their upward slope much lower than the current levels. Finally, the technicals are definitely moving lower, with the Momentum indicator remaining above 100 but the Relative Strength Index (RSI) indicator already at 47, predicting a continuation of the downtrend.

Support level: 1,932.65 1,921.80 1,907.45

Resistance levels: 1,962.30 1,979.10 1,988.30

Trading recommendation:

Gold Sell 1970 - 1973

Stoploss : 1978

Take profit 1: 1965
Take Profit 2: 1960
Take profit 3: 1955

Buy GOLD 1935 - 1933

Stop Loss: 1929

Take profit 1: 1945
Take profit 2:1950
Take profit 3: 1955

Note: Always install Stoploss and Takeprofit to ensure safety in trading