On the daily chart below, we can see that the big bullish momentum since the collapse of the Silicon Valley Bank has ended. The market now is pulling back after such a strong rally and the most likely support is the trendline where we will also find the 50% and the 61.8% Fibonacci retracement levels. The moving averages are also on the verge of a cross to the downside as the consolidation around the 2000 level has been going on for over a week.
XAUUSD technical analysis
On the 4 hour chart below, we can see that the price has been diverging with the MACD trading within the rising channel. Now that the price has broken out, we are likely to see a correction to the base of the channel which comes exactly at the 50% Fibonacci level. At the moment we are seeing a rangebound price action with the support at the 1982 level holding strongly.
On the 1 hour chart below, we can see the current range between the support at 1982 and the resistance at 2022. The buyers will need to see the price breaking above the top of the range and entering again within the channel to pile in and target the high at 2087.
The sellers, on the other hand, will want to see the price breaking below the support at 1982 to target the 50% Fibonacci level. Tomorrow we will see the US Jobless Claims report, which has been a market moving event lately. If the data miss expectations, we should see a rally in gold while a beat should send the price lower.
