FX.co ★ XAUUSD seeing strong resistance from descending trend line, potential reversal.

XAUUSD is seeing strong bearish momentum from our descending trend line. It is also seeing big resistance at the 1794 area. Price might react from here pushing prices down to 1756 area.

Stochastic is also testing the 95% resistance level where historically, price has reversed multiple times before.

Trading Recommendation

Entry: 1794

Reason for Entry:

Descending trend line resistance, 78.6% fibonacci retracement, overlap resistance

Take Profit: 1756

Reason for Take Profit:

Overlap support, 38.2% Fibonacci retracement

Stop Loss: 1.89148

Reason for Stop Loss:

88% Fibonacci retracement