Support and Resistance XAUUSD Technical Analysis and Support and Resistance XAUUSD Signals
Support and Resistance is one of the widely used concepts in xauusd trading. Most traders draw horizontal lines to show these levels.
There is also an indicator used to draw these levels automatically and indicate the resistance and support levels.
When it comes to these levels gold price can either bounce off these levels or break these levels.
If a resistance level is broken gold price will move higher and the resistance level will turn to a support.
If a support level is broken gold price will move lower and the this level will turn to a resistance.
XAUUSD Price where the majority of investors believe that xauusd prices will move higher, while resistance levels indicate the gold price at which a majority of investors feel xauusd prices will move lower.
Once gold price has broken through a support or a resistance then it is likely that the gold price will continue moving in that particular direction until it gets to the next support or resistance level.
The more often a support or resistance level is tested or is touched by the gold price and bounces, the more major that particular level becomes.
XAUUSD Technical Analysis and Generating XAUUSD Signals
These levels are calculated a xauusd trend lines method.
In an upward xauusd trend the resistance and support will generally head upwards
In a downward xauusd trend the resistance and support will generally head downwards