Trading Signal for GOLD (XAU/USD) for May 10 – 11: key level $2,028 (21 SMA – 200 EMA)
May 10, 2023 6:22 am
Early in the European session, Gold (XAU/USD) is trading around 2,031.50 above the 21 SMA and 200 EMA with a bullish bias. The XAU/USD pair consolidates around 2,030 in anticipation of the US CPI report.
On the 4-hour chart, we can see that gold has formed an uptrend channel since April 13. There is a probability that if it consolidates above 2,031, it could continue to rise and could reach 2,050 and even 2,077.
XAU/USD is being propped up by the expectations of the US inflation report. Early in the American session, this data will be released and it is likely that gold will have a strong upward movement if it consolidates above 2,031. If gold defends the support of 2,031, we could expect it to reach the zone of 2,062 (+1/8) and go up to the high of 2,077.
Conversely, strong inflation data will be bullish for the US dollar, so it could push gold lower and the metal could reach the psychological level of 2,000. Finally, it could fall to the 200 EMA located at 1,984.
The daily pivot point is located around 2,028. If the metal manages to settle above this level, we could expect a rally towards the 2,049 area and towards the +1/8 Murray level located at 2,062.
Conversely, with a break below the 21 SMA and a close below 2,025 on the 4-hour chart, we could expect a bearish acceleration towards the 8/8 Murray level located at $2,000. Ultimately, the instrument could reach the bottom of the uptrend channel around 1,982.
Our trading plan for the next few hours is to wait for gold to define its trend, for which we could sell below the 21 SMA or buy above 2,031. The eagle indicator is giving a positive signal but could enter the overbought zone.
The material has been provided by InstaForex Company – www.instaforex.com
Early in the European session, Gold (XAU/USD) is trading around 2,031.50 above the 21 SMA and 200 EMA with a bullish bias. The XAU/USD pair consolidates around 2,030 in anticipation of the US CPI report.
On the 4-hour chart, we can see that gold has formed an uptrend channel since April 13. There is a probability that if it consolidates above 2,031, it could continue to rise and could reach 2,050 and even 2,077.
XAU/USD is being propped up by the expectations of the US inflation report. Early in the American session, this data will be released and it is likely that gold will have a strong upward movement if it consolidates above 2,031. If gold defends the support of 2,031, we could expect it to reach the zone of 2,062 (+1/8) and go up to the high of 2,077.
Conversely, strong inflation data will be bullish for the US dollar, so it could push gold lower and the metal could reach the psychological level of 2,000. Finally, it could fall to the 200 EMA located at 1,984.
The daily pivot point is located around 2,028. If the metal manages to settle above this level, we could expect a rally towards the 2,049 area and towards the +1/8 Murray level located at 2,062.
Conversely, with a break below the 21 SMA and a close below 2,025 on the 4-hour chart, we could expect a bearish acceleration towards the 8/8 Murray level located at $2,000. Ultimately, the instrument could reach the bottom of the uptrend channel around 1,982.
Our trading plan for the next few hours is to wait for gold to define its trend, for which we could sell below the 21 SMA or buy above 2,031. The eagle indicator is giving a positive signal but could enter the overbought zone.
The material has been provided by InstaForex Company – www.instaforex.com
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