XAUUSD, XAGUSD reverse week’s loss
If gold and silver bears were feeling gloomy from Monday to Thursday, they received the biggest encouragement on Friday. Both XAUUSD and XAGUSD reversed days of losses following NFP data from the Bureau of Labor Statistics. XAGUSD made a bold step by flipping to positive for the week while XAUUSD still remains a little under. Importantly there is a strengthening sense of support under both metals. Let’s look at these charts.
XAUUSD weekly chart
- Year to year and month to month, XAUUSD remains in down trend mode.
- Down wards trend line drawn from January ’15 serves as resistance at moment.
- Price inside triangle chart pattern at moment; symmetrical triangles such as this can serve both as reversal or continuation patterns although more likely to be the latter. True direction will only be revealed after price emerges from the pattern.
- Price overcame ‘2 YL’ (2014) low despite such a bearish week so this psychological level could turn out to be an important support.
- Below ‘2 YL’ XAUUSD is open to more losses but as long as price stays above, there is a chance for additional gains.
XAUUSD daily chart
- There are a number of features from Friday’s post-NFP price action.
- Price flipped to positive for October.
- Upward trend line (red) turned out to be support.
- Price overcome ‘2 YL’ for the week despite early week losses.
- XAUUSD is still down trend at higher time frame so bulls buying at moment are early movers. Friday’s movement increases hope that there is support in place although a reversal pattern has not shown up yet.
XAGUSD weekly chart
- Year to year, month to month still down trend reinforced by downward trend line.
- Price sideways since August.
- Price action suggests support from ‘2 YL’ at 14.40.
XAGUSD daily chart
- There are 2 sets of price action to see in this daily chart.
- There is clearly reaction and support from ‘2 YL’.
- There is a support-resistance zone (orange) at the 14.80-14.90 region that was overcome on Friday.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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