For the XAUUSD pair, we see the development of a large downtrend, which is formed inside a large green channel. In the last section of the chart, we see an upward price movement inside a small yellow channel, which began in the middle of last month.
SimpleFX XAUUSD Chart Analysis: April 20, 2022.
There is a possibility of the continued growth of the XAUUSD pair in the following trading weeks. It is possible that the bulls are targeting the resistance level of 1985.73, which is located on the upper green line. If this price level breaks, the price of gold may rise to the level of 2040.13, which is located on the upper yellow line.
However, there is a possibility that the bears will soon break through the lower yellow line, as they are currently very close to the support level of 1937.31. With a successful breakdown of this level, gold may begin to fall in price towards the lower green line and the support level of 1824.53.
An approximate scheme of possible future movement is shown on the chart.
When confirming the upward movement of the price, we can consider opening deals for purchases. If a bearish trend is confirmed, then we can make money on sales.
