Trading Signal for GOLD (XAU/USD) for July 27-28, 2023: buy if rebounds above 1,943 (200 EMA – weekly support)
July 27, 2023 4:23 pm
Early in the American session, gold (XAU/USD) is trading around 1,957.36, below the 3/8 Murray, and below the 21 SMA located at 1,964.92. We can see that gold is making a strong technical correction after having reached 1,982 in the European session.
We expected that in the next few hours gold can bounce around the 200 EMA located at 1,952 or it could reach the weekly support of 1,943 which will be seen as an opportunity to buy if a technical rebound occurs.
In the 4-hour chart, we can see the formation of a technical reversal pattern called a head & shoulders. This pattern could be the signal for gold to reach 1,906 (1/8 Murray) in the next few days and even the psychological level of $1,900.
Market volatility has increased due to rising Treasury bonds and comments from the Fed Chairman which is putting pressure on gold. Hence, the price could continue its fall to 2/8 Murray at 1,937.
The technical medium-term outlook could be bearish since the Fed’s Chairman signaled an increase in the interest rate for September, which could put pressure on gold and it could reach 1,863, a GAP that remains to be covered, and even 1,845.
Conversely, the uptrend could be resumed only if gold consolidates above 1,970. Then, it could reach the psychological level of $2,000 and could even reach 2,031 (5/8 Murray).
Our trading plan for the next few hours is to buy gold around 1,943 or if it reaches 1,937 (2/8 Murray). These levels could give us the opportunity to buy. On June 14, gold left a low at 1,943 and formed a double bottom pattern. So, it will be the key to buy with targets at 1,950-1,971.
At the opening of the American session, gold left a small GAP that can only be seen on the 1-minute chart around 1,971. We can consider this as a signal to buy from current levels, waiting for it to be covered in the coming days.
The material has been provided by InstaForex Company – www.instaforex.com
Early in the American session, gold (XAU/USD) is trading around 1,957.36, below the 3/8 Murray, and below the 21 SMA located at 1,964.92. We can see that gold is making a strong technical correction after having reached 1,982 in the European session.
We expected that in the next few hours gold can bounce around the 200 EMA located at 1,952 or it could reach the weekly support of 1,943 which will be seen as an opportunity to buy if a technical rebound occurs.
In the 4-hour chart, we can see the formation of a technical reversal pattern called a head & shoulders. This pattern could be the signal for gold to reach 1,906 (1/8 Murray) in the next few days and even the psychological level of $1,900.
Market volatility has increased due to rising Treasury bonds and comments from the Fed Chairman which is putting pressure on gold. Hence, the price could continue its fall to 2/8 Murray at 1,937.
The technical medium-term outlook could be bearish since the Fed’s Chairman signaled an increase in the interest rate for September, which could put pressure on gold and it could reach 1,863, a GAP that remains to be covered, and even 1,845.
Conversely, the uptrend could be resumed only if gold consolidates above 1,970. Then, it could reach the psychological level of $2,000 and could even reach 2,031 (5/8 Murray).
Our trading plan for the next few hours is to buy gold around 1,943 or if it reaches 1,937 (2/8 Murray). These levels could give us the opportunity to buy. On June 14, gold left a low at 1,943 and formed a double bottom pattern. So, it will be the key to buy with targets at 1,950-1,971.
At the opening of the American session, gold left a small GAP that can only be seen on the 1-minute chart around 1,971. We can consider this as a signal to buy from current levels, waiting for it to be covered in the coming days.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: