On the daily timeframe, we see that XAU/USD is currently testing support at the 50% Fibonacci retracement level and the 100 SMA and 200 SMA. If that’s not enough to make you want to go long on the pair, perhaps the bullish divergence on Stochastic will! Price is making lower lows while the indicator is making higher lows.
However, be careful. Remember that anything can happen in the market. A bearish close below the SMAs around 1,290.00 could mean that we will see a deeper sell-off on XAU/USD.
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