Trading Signal for GOLD (XAU/USD) for June 29- July 07, 2023: buy above $1,900 or if rebounds at $1,875 (200 EMA – oversold)
June 29, 2023 7:22 am
Early in the European session, Gold (XAU/USD) is trading at 1,912.12 and around the 61.8% Fibonacci. Since February 28 when it made the low at 1,804.69 until May 4 when it reached the high at 2,077.97, the price has corrected to 61.8% (1,906) and this could be a level of a resumption of the bullish trend for the medium term.
The Fibonacci Indicator could be giving a signal of a possible technical rebound in gold in the short term. This could happen only if XAU/USD consolidates above the psychological level of 1,900 and above the 61.8% Fibonacci around 1,906.
On the daily chart, we can see that gold formed two downtrend channels, the first on May 5 and the second on May 25. Yesterday in the American session, gold reached the bottom of the secondary bearish channel forming a low at 1,902.85.
In the next few hours, gold is expected to bounce around 1,900 and could consolidate above the daily pivot point located at 1,910. If gold rises and trades above both levels, a recovery could occur towards 7/8 Murray, located at 1,937 and could even reach the 21 SMA located at 1,942.
In case gold falls below 1,900, we could expect a bearish acceleration and it could reach the 200 EMA located at 1,880 and could even reach 6/8 Murray around 1,875. If this scenario comes true, we could see this level as a zone of strong technical support. Thus, we could take it as an opportunity to buy gold in the short term, with targets around 1,942 (21 SMA).
In the chart, we can see that gold left a gap on March 10 around 1,867.28. This level could be seen as a signal for a fall in gold, and the price could cover this gap in case it trades below 1,880 (200 EMA).
Our trading plan for the next few days is to wait for gold to consolidate above the psychological level of 1,900 to buy with targets at 1,937 and 1,943. In case we see gold trading around 1,875, it could be seen as an opportunity to buy, as strong monthly support is clustered around that level.
Since June 20, the Eagle indicator has reached an extremely oversold level. Hence, a sustained recovery of gold is likely to occur in the coming days.
The material has been provided by InstaForex Company – www.instaforex.com
Early in the European session, Gold (XAU/USD) is trading at 1,912.12 and around the 61.8% Fibonacci. Since February 28 when it made the low at 1,804.69 until May 4 when it reached the high at 2,077.97, the price has corrected to 61.8% (1,906) and this could be a level of a resumption of the bullish trend for the medium term.
The Fibonacci Indicator could be giving a signal of a possible technical rebound in gold in the short term. This could happen only if XAU/USD consolidates above the psychological level of 1,900 and above the 61.8% Fibonacci around 1,906.
On the daily chart, we can see that gold formed two downtrend channels, the first on May 5 and the second on May 25. Yesterday in the American session, gold reached the bottom of the secondary bearish channel forming a low at 1,902.85.
In the next few hours, gold is expected to bounce around 1,900 and could consolidate above the daily pivot point located at 1,910. If gold rises and trades above both levels, a recovery could occur towards 7/8 Murray, located at 1,937 and could even reach the 21 SMA located at 1,942.
In case gold falls below 1,900, we could expect a bearish acceleration and it could reach the 200 EMA located at 1,880 and could even reach 6/8 Murray around 1,875. If this scenario comes true, we could see this level as a zone of strong technical support. Thus, we could take it as an opportunity to buy gold in the short term, with targets around 1,942 (21 SMA).
In the chart, we can see that gold left a gap on March 10 around 1,867.28. This level could be seen as a signal for a fall in gold, and the price could cover this gap in case it trades below 1,880 (200 EMA).
Our trading plan for the next few days is to wait for gold to consolidate above the psychological level of 1,900 to buy with targets at 1,937 and 1,943. In case we see gold trading around 1,875, it could be seen as an opportunity to buy, as strong monthly support is clustered around that level.
Since June 20, the Eagle indicator has reached an extremely oversold level. Hence, a sustained recovery of gold is likely to occur in the coming days.
The material has been provided by InstaForex Company – www.instaforex.com
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