Trading Signal for Gold (XAU/USD) for June 6-7, 2023: sell below $1,968 (200 EMA – 21 SMA)
June 6, 2023 7:23 pm
Early in the American session, Gold (XAU/USD) was trading around 1,961.80, below the 21 SMA and below the 200 EMA. We can see that there is a strong consolidation below 1,968, and it is expected that in the next few hours a technical correction could happen. Yesterday, gold left a gap around 1,945 after publication of the US manufacturing data.
Gold made a strong recovery yesterday from the low of 1,938, triggered by the release of disappointing PMI data for May. This in turn caused the dollar to weaken, and we saw US bond yields fall from 3.859%. This data left a gap that could be covered in the next few days, and gold is expected to fall to levels of 1,937.
In the event that gold falls below 1,962 or below 1,968, it is expected that it could reach 1,955 and 1,945. If the downward pressure continues, we could expect it to reach 1937, a level that coincides with 7/8 Murray.
In the event that gold breaks and consolidates above 1,970, it is expected that it can reach the zone of strong resistance of 1,984, and finally it could reach the psychological level of $2,000.
As long as the XAU/USD trades below the 200 EMA located at 1,968, it will be seen as a signal to sell and this could reach levels of 1,950 and 1,937.
The eagle indicator is reaching a zone of resistance and could lose strength. If this scenario continues it will be seen as a confirmation of the bearish movement. On the contrary, a break of the resistance of the indicator and this in turn a daily close of gold above 1,970, will mean the resumption of the bullish cycle.
The material has been provided by InstaForex Company – www.instaforex.com
Early in the American session, Gold (XAU/USD) was trading around 1,961.80, below the 21 SMA and below the 200 EMA. We can see that there is a strong consolidation below 1,968, and it is expected that in the next few hours a technical correction could happen. Yesterday, gold left a gap around 1,945 after publication of the US manufacturing data.
Gold made a strong recovery yesterday from the low of 1,938, triggered by the release of disappointing PMI data for May. This in turn caused the dollar to weaken, and we saw US bond yields fall from 3.859%. This data left a gap that could be covered in the next few days, and gold is expected to fall to levels of 1,937.
In the event that gold falls below 1,962 or below 1,968, it is expected that it could reach 1,955 and 1,945. If the downward pressure continues, we could expect it to reach 1937, a level that coincides with 7/8 Murray.
In the event that gold breaks and consolidates above 1,970, it is expected that it can reach the zone of strong resistance of 1,984, and finally it could reach the psychological level of $2,000.
As long as the XAU/USD trades below the 200 EMA located at 1,968, it will be seen as a signal to sell and this could reach levels of 1,950 and 1,937.
The eagle indicator is reaching a zone of resistance and could lose strength. If this scenario continues it will be seen as a confirmation of the bearish movement. On the contrary, a break of the resistance of the indicator and this in turn a daily close of gold above 1,970, will mean the resumption of the bullish cycle.
The material has been provided by InstaForex Company – www.instaforex.com
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