Gold: upside seems over, 2,009 as critical support
April 5, 2023 6:23 pm
The price of gold is trading at 2,018 at the time of writing far below today’s high of 2,032. The yellow metal turned to the downside in the short term as the Dollar Index rebounded. After its amazing rally, a downside movement was natural, although the US reported poor data during the week.
Surprisingly or not, XAU/USD crashed, even though the US ADP Non-Farm Employment Change was reported at 145K below 208K expected and compared to 261K in the previous reporting period, while ISM Services PMI dropped from 55.1 to 51.2 points. In addition, Trade Balance and Final Services PMI reported poor data as well.
XAU/USD Crash!
As you can see on the h1 chart, the rate tested and retested the median line (ML) but it has failed to stay above this dynamic resistance. It has failed to reach the R3 (2,033) confirming exhausted buyers and now it has reached the weekly R2 (2,010).
The 2,009 former high represents static support. The bias remains bullish as long as it stays above these immediate support levels.
XAU/USD Forecast!
A valid breakdown below 2,009, a bearish closure below this obstacle activates more declines. This scenario could bring new selling opportunities.
The material has been provided by InstaForex Company – www.instaforex.com
The price of gold is trading at 2,018 at the time of writing far below today’s high of 2,032. The yellow metal turned to the downside in the short term as the Dollar Index rebounded. After its amazing rally, a downside movement was natural, although the US reported poor data during the week.
Surprisingly or not, XAU/USD crashed, even though the US ADP Non-Farm Employment Change was reported at 145K below 208K expected and compared to 261K in the previous reporting period, while ISM Services PMI dropped from 55.1 to 51.2 points. In addition, Trade Balance and Final Services PMI reported poor data as well.
XAU/USD Crash!
As you can see on the h1 chart, the rate tested and retested the median line (ML) but it has failed to stay above this dynamic resistance. It has failed to reach the R3 (2,033) confirming exhausted buyers and now it has reached the weekly R2 (2,010).
The 2,009 former high represents static support. The bias remains bullish as long as it stays above these immediate support levels.
XAU/USD Forecast!
A valid breakdown below 2,009, a bearish closure below this obstacle activates more declines. This scenario could bring new selling opportunities.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: