XAU/USD traded higher on Tuesday but hit resistance slightly below its record peak, near the 2075 zone, marked by the high of Aug. 6, 2020, and today, it pulled back. However, the precious metal remains above the steep uptrend line drawn from the low of Feb. 3 and above the upside support line drawn from the low of Aug. 9. With these technical signs in mind, we will consider the short-term picture to be positive.
We believe that the bulls could retake charge from near the 1974 zone, marked by the inside swing high of Feb. 24, and perhaps aim for another test near 2075. If they are not willing to stop there this time around, they will enter uncharted territory, and with no prior highs and inside swing lows to mark our next resistances, we will consider as such the psychological zones of 2100 and 2150.
Shifting attention to our short-term oscillators, we see that the RSI exited its above-70 zone, while the MACD, although above both it's zero and trigger lines, shows signs it could turn down soon. Both indicators still detect high upside speed, but they also suggest a slight slowdown, which makes us careful that some further retreat may be in the works before the next positive leg, perhaps for the metal to test the aforementioned steep upside line.
We will start examining the case of a larger negative correction upon a break below 1915, support marked by the high of Jun. 1. Such a move could confirm the break below the steep uptrend line and allow the bears to push towards the low of Feb. 24, at 1880. A break below that barrier could extend the fall towards the 1845 level, marked by the low of Feb. 15 or the upside line taken from the low of Aug. 9.