XAUUSD approaching resistance, potential drop!

14 พ.ค. 2018

XAUUSD is approaching our first resistance at 1325.87 (horizontal swing high resistance, 100% Fibonacci extension, 38.2% Fibonacci retracement) which coincides with our short term descending resistance line. A strong reaction might occur below this level, pushing price down to our major support at 1302.72 (horizontal swing low support, 161.8% Fibonacci retracement). A breakout below our intermediate support at 1317.34 (horizontal overlap support, 38.2% Fibonacci retracement) might provide the bearish acceleration to our major support target.
Stochastic (89,5,3) is also approaching our major resistance, in line with the potential upside before price reaches our first resistance. A reaction off this level might be a good precursor for a potential drop in price.
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