The XAU/USD pair has remained somewhat stable in recent trade but reached a high of 1815.2 yesterday. At the end of the day, GOLD closed by forming a Doji Candle in the Daily Time Frame.
As seen from this morning’s four-hour chart, the price met on Tuesday to support level 1791.7, which is in line with the trend line support taken from the low of 1670.4. The 50.00% retracement ratio could not be touched 1788.1 for a few pips before the price increased. The most important thing here is that the four-hour support mentioned above is linked to the weekly support 1787.4.
The initial take profit target for long above 1791.7 is 161.8% H4 Fibonacci extension point 1815.3. This is followed by four hours Quasimodo resistance 1822.8.
Also interesting in the weekly timeframe is that 1451.4/1703.2 has a downward wage pattern. Price will try to move to Daily Quasimodo Resistance 1841.0 if it crosses the weekly Quasimodo Resistance in the Daily Timeframe. Traders will want to be tested once in 1787.4 before moving to 1841.0.
Traders who buy after being tested at 1791.7 will make some profit from 161.8% H4 Fibonacci extension point 1815.3.
Meanwhile, the price is pointing upwards in the big time frame, where there could be additional buying above 1822.8.