XAUUSD: weekly review 26.04 -30.04

A week ago, I predicted that gold would trade above 1760 with an upward bias. Nevertheless, the trading week was rather difficult. There were conflicting patterns on the short-term charts, which resulted in several unsuccessful trades. However, all losses were quickly returned, and Friday brought a good profit.

Now I will try to understand what changes have occurred in the technical picture and give a forecast for the coming week.

To determine the key support and resistance levels, we will use the third candlestick line method. On the weekly chart, the key resistance is still at 1815.83 and while sellers hold this level, the weekly trend remains bearish.

Last week, the key support on the daily chart was at 1732.41. It is now at a weekly low of 1736.63. Additional support is at 1759.55, which also roughly coincides with the upper border of the previous range (1677-1760) and the lower border of the weekly cloud.

On the daily chart, gold is trading in the cloud, with some indicators moving into positive territory, which may indicate that the pair is aiming for a further upside break.

The trend line at H4 indicates a strong uptrend. Moreover, the third touch of this line is often a strong buy signal. However, some of the indicators point to a bearish divergence, which may indicate a weakening of the uptrend.

Conclusions based on the analysis results

Gold remains bullish. Key support is in the 1760 region. Trade above 1760 should trigger further gains towards 1800, 1815, with a medium-term target in the 1845 region.

The coming week will be the last week of April. We shouldn't forget that the monthly candlestick in March was bearish and sellers are able to return to the market. Trades last week and Friday confirm this. There may be some very strong resistance around 1800. However, sellers need to trade well below 1760 to seize the initiative.