XAUUSD - 17/05

Welcome to the ever volatile XAUUSD! Let's see what we have planned...

XAUUSD is obviously in a bearish trend and when XAUUSD is on a trend, it tends to follow it until support or resistance hits. Unless it breaks these levels you could see either a +200pip rise or increase, as we've seen before.

Res level 2 (zone) has been marked, we have seen XAUUSD test this and not manage to break. Alongside res level 1, being a common area for XAUUSD to decide where it is going. r2 has been marked (next to blue arrow) as a historical res level. Alongside this, we have marked res level 1, matching r1 on historical.

Support levels follow the same criteria, with sup level 1 matching s1 and sup level 2 matching s2. We have seen many times this month XAU go towards 1265 and bounce back up. If we see it break this level, we could see a drop towards 1240. Please refer to 1W text in the analysis provided for views on the Shooting Star, Bearish Engulfing and Rejection Candle.

This will be an interesting watch for next week.