Trading Signal for GOLD (XAU/USD) for July 14-17, 2023: sell below $1,968 (3/8 Murray – overbought)
July 14, 2023 1:22 pm
Early in the American session, gold is trading around 1,957.11, above the 21 SMA and above the 200 EMA.
We can see consolidation around the 1,963 level. We expect that in the next few hours, gold could pull back with the target at 3/8 Murray located at 1,968
If this scenario comes true, we could expect gold to find strong rejection because there is also the top of the uptrend channel and it will be seen as a signal to sell.
The Eagle indicator has been giving a negative signal since July 12. Gold has made a slight correction, but a deeper correction is expected and it could reach 1,947 or even 1,941 (200 EMA).
US inflation data weighed on the strength of the USD. The technical chart displays a fall in the dollar index (USDX). Gold benefited from the greenback’s weakness and yield bonds. This scenario could change in the short term and gold could fall to 1,863 where it left a Gap that still needs to be covered.
Technically, we can see that XAU/USD is overbought, so any technical bounce below 1,968 will be seen as a signal to sell with targets at 2/8 Murray located at 1,937.
A sharp break of the uptrend channel and a daily close below 1,935 could weaken the strength of gold and become the turning point of a trend reversal. Therefore, the instrument could accelerate its fall towards 1,906 (1/8 Murray) and even could even reach the minimum of June 29 around 1,893.
Our trading plan is to sell gold below 1,968 with targets at 1,945 and at 1,937. The Eagle indicator is giving a negative signal which supports our bearish strategy.
The material has been provided by InstaForex Company – www.instaforex.com
Early in the American session, gold is trading around 1,957.11, above the 21 SMA and above the 200 EMA.
We can see consolidation around the 1,963 level. We expect that in the next few hours, gold could pull back with the target at 3/8 Murray located at 1,968
If this scenario comes true, we could expect gold to find strong rejection because there is also the top of the uptrend channel and it will be seen as a signal to sell.
The Eagle indicator has been giving a negative signal since July 12. Gold has made a slight correction, but a deeper correction is expected and it could reach 1,947 or even 1,941 (200 EMA).
US inflation data weighed on the strength of the USD. The technical chart displays a fall in the dollar index (USDX). Gold benefited from the greenback’s weakness and yield bonds. This scenario could change in the short term and gold could fall to 1,863 where it left a Gap that still needs to be covered.
Technically, we can see that XAU/USD is overbought, so any technical bounce below 1,968 will be seen as a signal to sell with targets at 2/8 Murray located at 1,937.
A sharp break of the uptrend channel and a daily close below 1,935 could weaken the strength of gold and become the turning point of a trend reversal. Therefore, the instrument could accelerate its fall towards 1,906 (1/8 Murray) and even could even reach the minimum of June 29 around 1,893.
Our trading plan is to sell gold below 1,968 with targets at 1,945 and at 1,937. The Eagle indicator is giving a negative signal which supports our bearish strategy.
The material has been provided by InstaForex Company – www.instaforex.com
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