Trading Signal for GOLD (XAU/USD) on September 7-8, 2023: buy if breaks $1,921 (3/8 Murray – 200 EMA)
September 7, 2023 5:26 am
Early in the European session, gold (XAU/USD) is trading around 1,918.72, below the 200 EMA, and the 21 SMA following a downtrend formed since August 30 when the price reached 1,953.
Gold is currently trading near yesterday’s low at 1,915.33, which bottomed out after an upbeat US PMI which unexpectedly rose to 54.5 in August, above analysts’ expectations.
The daily pivot point is located around 1,920 and the 3/8 Murray line is above it, around 1,921 which could put downward pressure on gold and it could fall towards the 2/8 Murray at 1,906 in the next few hours .
In case gold breaks below 1,915, we could expect a further bearish movement. The instrument could reach 1,906 and even the psychological level of $1,900.
On the other hand, a sharp break of the downtrend channel and a close above 1,921 on the 4-hour chart could give gold a chance for recovery and the metal could rise to 1,928 and 1,930. If this scenario occurs, the zone of resistance of 1,930 could put pressure on gold and from that level we could expect the bearish cycle to resume.
If gold trades below 4/8 Murray at 1,937 in the next few days, the outlook for gold will remain negative. Below this area, gold is expected to continue its fall in the short term and can reach the zone of 1/8 Murray at 1,890.
The first weekly support is located at 1,917. If gold consolidates above this zone, it could be seen as an opportunity to buy in the next few hours with the target at 1,921. If the bullish force prevails, we could continue buying with the targets at 1,930.
Our trading plan for the next few hours is to buy gold in case there is a break above 1,921 with the target at 1,930. Around this zone, we expect a technical correction which could be seen as a signal to sell with the target at 1,906.
The material has been provided by InstaForex Company – www.instaforex.com
Early in the European session, gold (XAU/USD) is trading around 1,918.72, below the 200 EMA, and the 21 SMA following a downtrend formed since August 30 when the price reached 1,953.
Gold is currently trading near yesterday’s low at 1,915.33, which bottomed out after an upbeat US PMI which unexpectedly rose to 54.5 in August, above analysts’ expectations.
The daily pivot point is located around 1,920 and the 3/8 Murray line is above it, around 1,921 which could put downward pressure on gold and it could fall towards the 2/8 Murray at 1,906 in the next few hours .
In case gold breaks below 1,915, we could expect a further bearish movement. The instrument could reach 1,906 and even the psychological level of $1,900.
On the other hand, a sharp break of the downtrend channel and a close above 1,921 on the 4-hour chart could give gold a chance for recovery and the metal could rise to 1,928 and 1,930. If this scenario occurs, the zone of resistance of 1,930 could put pressure on gold and from that level we could expect the bearish cycle to resume.
If gold trades below 4/8 Murray at 1,937 in the next few days, the outlook for gold will remain negative. Below this area, gold is expected to continue its fall in the short term and can reach the zone of 1/8 Murray at 1,890.
The first weekly support is located at 1,917. If gold consolidates above this zone, it could be seen as an opportunity to buy in the next few hours with the target at 1,921. If the bullish force prevails, we could continue buying with the targets at 1,930.
Our trading plan for the next few hours is to buy gold in case there is a break above 1,921 with the target at 1,930. Around this zone, we expect a technical correction which could be seen as a signal to sell with the target at 1,906.
The material has been provided by InstaForex Company – www.instaforex.com
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