Trading Signal for GOLD (XAU/USD) for August 23-24, 2023: buy above $1,900 an sell below $1,921 (200 EMA – 3/8 Murray)
August 23, 2023 4:23 pm
Early in the American session, gold (XAU/USD) is trading around 1,907.15, above the 21 SMA, above the 200 EMA located at 1,902, and above the psychological level of 1,900.
According to the H1 chart, we can see that gold sharply broke the downtrend channel formed since the beginning of August and now we see a new bullish trend channel in progress since August 17.
In the next few hours, a technical correction is expected in the next few hours towards the 200 EMA located at 1,902. From there, we could expect the metal to resume the bullish cycle and the price could reach 3/8 Murray at 1,921.
As we said in our previous analysis, gold has a negative divergence with US Treasuries. We are currently watching a recovery in XAU/USD. This is due to the fall in US Treasury yields from their peak at 4.35%.
According to the 1-hour chart, gold is overbought and hovering around the 95-point level of the Eagle indicator. This suggests that a rally to daily resistance at 1,918 could be interrupted by a strong technical correction.
US PMIs will be released in the next few hours. If the data is favorable, we could expect a correction towards the psychological level of 1,900 and from then, the bullish cycle could resume.
If the data is negative and the outlook remains bullish for gold, it could reach 1,918 -1,921. Below this level, we could use an opportunity to sell with targets at 1,906 and 1,900.
Our trading plan for the next few hours is to buy gold above 1,902 or above 1906 with the target at 1,921. On the other hand, we could sell only if the price approaches the 3/8 Murray zone as the Eagle indicator is in the overbought zone and proves a bearish signal.
The material has been provided by InstaForex Company – www.instaforex.com
Early in the American session, gold (XAU/USD) is trading around 1,907.15, above the 21 SMA, above the 200 EMA located at 1,902, and above the psychological level of 1,900.
According to the H1 chart, we can see that gold sharply broke the downtrend channel formed since the beginning of August and now we see a new bullish trend channel in progress since August 17.
In the next few hours, a technical correction is expected in the next few hours towards the 200 EMA located at 1,902. From there, we could expect the metal to resume the bullish cycle and the price could reach 3/8 Murray at 1,921.
As we said in our previous analysis, gold has a negative divergence with US Treasuries. We are currently watching a recovery in XAU/USD. This is due to the fall in US Treasury yields from their peak at 4.35%.
According to the 1-hour chart, gold is overbought and hovering around the 95-point level of the Eagle indicator. This suggests that a rally to daily resistance at 1,918 could be interrupted by a strong technical correction.
US PMIs will be released in the next few hours. If the data is favorable, we could expect a correction towards the psychological level of 1,900 and from then, the bullish cycle could resume.
If the data is negative and the outlook remains bullish for gold, it could reach 1,918 -1,921. Below this level, we could use an opportunity to sell with targets at 1,906 and 1,900.
Our trading plan for the next few hours is to buy gold above 1,902 or above 1906 with the target at 1,921. On the other hand, we could sell only if the price approaches the 3/8 Murray zone as the Eagle indicator is in the overbought zone and proves a bearish signal.
The material has been provided by InstaForex Company – www.instaforex.com
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