XAUUSD Setting the Stage for a $100 Move?

Written by Justin Bennett

Trusted by 100k monthly readers

Last Updated July 17, 2020

Forex trader since 2002

Written by Justin Bennett 

Forex trader since 2002

100k monthly readers

Updated July 17, 2020


I’ve been bullish on XAUUSD since April.

The way gold rebounded following the March selloff was no doubt impressive.

It also hinted at a bullish continuation, which hasn’t disappointed yet.

First, we had the break above 1680 on April 13th.

That breakout exposed the 1750 resistance area.

After several weeks of consolidation, XAUUSD closed above 1750 on June 22nd, which opened the door to 1800.

The 1800 level broke down on July 8th.

That brings us to this week’s price action.

As you can see, XAUUSD has been hovering just above 1800 all week.

To be more precise, the level in question is 1795, which is the same level I pointed out in last weekend’s video.

Many thought Thursday’s selloff would cause gold bulls to lose their grip on 1795 support, but notice that the market never closed below that level.

As for next week, I think it’s going to take a daily close above 1815 for the next leg higher to materialize.

But as I’ve stated several times recently, there isn’t much standing in the way of a run at gold’s all-time highs just above 1900.

That means a daily close above 1815 from gold next week could trigger a $100 move over the coming weeks.

We’ll have to wait and see how this unfolds, but that’s my base case as long as XAUUSD stays above 1795 on a daily closing basis.

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XAUUSD horizontal support and resistance levels
XAUUSD daily time frame
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Justin Bennett - founder of Daily Price Action

About the author

Justin Bennett started trading in 2002, and let's just say it was a bumpy ride. But in 2010, he had his "aha" moment once he ditched the indicators and focused 100% on price action. Justin has built a following of 100,000+ monthly readers and taught thousands of traders using his simple, no-nonsense approach. He's been highlighted as a top trader by Stocks and Commodities Magazine and regularly featured by Forex Factory next to publications from Bloomberg and CNBC. ...Read More


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