02.05.202214:29 Forex Analysis & Reviews: XAU/USD Technical Analysis and Trading Tips on May 2, 2022

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At the time of writing, XAU/USD is trading near 1880.00, down from 1899.00 during today's Asian session. On the 1-hour and 4-hour charts, XAU/USD has broken through the important levels of 1913.00 and 1926.00; on the weekly chart, the lower limit of the rising channel also passes through the level of 1926.00.

Technical indicators OsMA and Stochastic on 1-hour, 4-hour, daily, weekly, and monthly charts recommend short positions.

At the same time, the pair is falling towards important long-term support levels of 1873.00 (144 EMA on the daily chart), 1858.00 (200 EMA on the daily chart), and 1851.00 (50 EMA on the weekly chart).

In our main scenario (and from a technical point of view) there will be a rebound in the zone of these support levels, and XAU/USD will resume growth. The breakdown of the resistance levels of 1918.00, and 1926.00 will confirm the resumption of the upward trend. Further growth will bring the pair back inside the ascending channel on the weekly chart and direct it first towards the recent local highs at 1958.00, 2000.00, and then towards the multi-year high at 2075.00, reached last month.

In an alternative scenario, and after the breakdown of the support level of 1851.00, XAU/USD will continue to decline towards the recent balance line passing through the 1800.00 mark.

Above the support levels of 1738.00 (144 EMA on the weekly chart) and 1672.00 (200 EMA on the weekly chart), XAU/USD still remains in the zone of a long-term bull market. The negative fundamental background prevailing in the market creates prerequisites to maintain high demand for gold and the growth of its quotes.

Support levels: 1873.00, 1858.00, 1851.00, 1832.00, 1800.00, 1785.00

Resistance levels: 1913.00, 1918.00, 1926.00, 1958.00, 2000.00, 2070.00, 2075.00

Trading tips

Sell Stop 1869.00. Stop-Loss 1902.00. Take-Profit 1858.00, 1851.00, 1832.00, 1800.00, 1785.00

Buy Stop 1902.00. Stop-Loss 1869.00. Buy Limit 1873.00, 1860.00, 1851.00. Stop-Loss 1845.00. Take-Profit 1913.00, 1918.00, 1926.00, 1958.00, 2000.00, 2070.00, 2075.00

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