As of August 21, 2025, XAU/USD (Gold/USD) has seen its recent bullish momentum ease, entering a sideways consolidation around the $3340 level. The bullish trend appears to have paused, and a more refined analysis incorporating technical indicators and volume is essential to determine the next direction. In this analysis, we utilize the framework of technical analysis—including moving averages, MACD, RSI, ADX, and trading volume—to evaluate the current conditions and future potential of the market.
On the chart, the price remains above both the 50EMA and 200SMA, suggesting a continued advantage for trend-following strategies. The near-completion of a “golden cross” pattern—where the 50EMA crosses above the 200SMA—signals the possibility of a medium- to long-term uptrend (What is a Moving Average?).
However, a breakdown below the 50EMA could strengthen corrective pressure, making the 200SMA near $3330 the next key line of defense.
The MACD line is currently below the signal line, with the histogram turning negative—indicating a clear drop in momentum. If the MACD line crosses back above the signal and the histogram returns to positive, it may signal a bullish reversal.
The RSI is hovering between 40 and 50, showing a lack of clear short-term trend. A break above 50 would suggest a resumption of buying pressure and short-term upside potential.
The ADX is stagnating around the 25 level, indicating that the previous strong trend has temporarily faded. If ADX begins rising again, it may imply an upcoming breakout (See list of technical indicators).
Volume has subsided after peaking during yesterday’s rally, suggesting the market may be in a preparation phase for the next breakout. A breakout accompanied by high volume—whether upward or downward—will greatly increase the reliability of the trend change.
| Level | Price | Rationale |
|---|---|---|
| Short-Term Resistance | $3355 | Cluster of recent upper wicks; likely reaction zone |
| Mid-Term Target | $3370 | Historical resistance level where sellers previously emerged |
| Short-Term Support | $3340 | Near the 20EMA; considered a pullback buy level |
| Mid-Term Support | $3330 | Near the 200SMA; strong area of potential rebound |
While XAU/USD is in a short-term consolidation phase, the medium-term trend remains bullish. Watching key support zones at $3340 and $3330—along with confirmation from MACD and RSI—will be crucial for making informed trade decisions. Investors should continue monitoring for signs of trend shifts and manage risk using the core trio of volume, momentum, and technical lines.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. All trading decisions should be made at your own discretion and risk.
This article is intended for informational purposes only and does not constitute financial or investment advice. The analyses and strategies mentioned are based on past data and current market conditions, and may be subject to change in the future. When making investment decisions, always conduct your own research and consult a professional if necessary.
Superior trade execution & trading conditions with the NDD method.
The online FX industry provides a platform for investors worldwide to engage in the buying and selling.
Subscribe to our daily newsletter and get the best forex trading information and markets status updates
Trade within minutes!
Comment (0)