Support and Resistance XAUUSD Technical Analysis and Support and Resistance XAUUSD Signals

Support & Resistance is one of the widely used concepts in xauusd trading. Most traders plot horizontal lines to show these levels.

There is also an indicator used to draw these levels automatically and indicate the resistance & support levels.

When it comes to these levels gold price can either bounce off these regions or break out through these regions.

If a resistance level is broken gold price will move higher & the resistance level will turn to a support.

If a support level is broken gold trading price will move lower and this level will turn to a resistance.

XAUUSD Price where the majority of investors believe that prices will move higher, while resistance levels indicate the price at which a majority of investors feel gold trading prices will move lower.

Once gold trading price has broken through a support or a resistance then it is likely that the gold price will continue to move in that specific direction until such a time when it gets to the next support or resistance zone.

The more often a support or resistance level is tested or is touched by the gold trading price & bounces, the more major that particular level becomes.

XAUUSD Technical Analysis & How to Generate Trading Signals

These levels are calculated a xauusd trend lines method.

Upwards XAUUSD Trading Trend

In an upwards xauusd trend the resistance and support will generally head upward

Upwards XAUUSD Trading Trend

Downwards Gold Trading Trend

In a downward xauusd trend the resistance & support will generally head downwards

Downwards XAUUSD Trading Trend