Current trend

At the end of last year, the XAU/USD pair could not break the resistance level of 2082.00 and went into a downward correction with the target at 1975.00.

The negative dynamics developed against the latest US employment data: December nonfarm payrolls amounted to 216.0K, better than the expected 170.0K, as a result of which expectations for a 25 basis point cut in the Fed interest rate in March decreased from 73.4% a week ago to 62.7% but this opinion still prevails among experts.

The overall long-term trend of the asset remains upwards, and after reaching the support level of 1975.00, long positions with the target at the resistance level of 2082.00 are relevant. The RSI indicator (21) returned from the overbought zone to the neutral area, which allows us to consider both trend and correction positions.

At the end of December, the medium-term trend reversed upwards with the main target in zone 2 (2142.00–2133.00) but within the current downward correction, the price may decline to the area of key trend support 2005.00–1997.00, after which long positions with the first target at the December 28 high of 2088.00 will become relevant.

Support and resistance

Resistance levels: 2082.00, 2134.00.

Support levels: 1975.00, 1929.00.

Trading tips

Long positions may be opened from 2005.00 with the target at 2088.00 and stop loss around 1975.00. Implementation time: 9–12 days.

Short positions may be opened below 1975.00 with the target at 1929.00 and stop loss around 1995.00.