xauusd analysis on dated 20-10-2022

90
60pips.com

This suggests we may see a short term pullback into the consolidation lows or into the higher time frame lows of $1639.00 and resistance. A bearish rejection at these levels could invite the current sellers an opportunity to add to their positions. Gold is below 50 SMA on daily time frame.

 

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We prefer to sell from this area 1639. If the resistance break at 1640 area; Gold will move up 1648/1654 area gradually. Consider the following instructions when you make a new trade on xauusd today-

 

  • The medium term bias remains bearish.
  • Broken out of the triangle formation to the downside.
  • A mild correction has been posted from yesterdays low, this is seen as a retest of the breakout level.
  • Resistance could prove difficult to breakdown.
  • We therefore, prefer to fade into the rally with a tight stop in anticipation of a move back lower.

 

Recommendations: Sell/Sell limit @ 1639      TP/Target: 1616