Trading Signals for GOLD (XAU/USD) on April 14-17, 2023: sell below $2,047 (Overbought – 21 SMA)
April 14, 2023 6:22 am
Early in the European session, Gold (XAU/USD) is trading around 2,046.65 above the 21 SMA and within the uptrend channel formed since April 12. In the next few hours, gold could continue its rise, but it is showing signs of exhaustion.
Yesterday during the American session, gold reached $2,048.73. This level represents its highest peak since March 2022. XAU/USD reached this level in light of the softer-than-expected Producer Price Index (PPI) from the United States.
The weakness of the US dollar together with US Treasury bond yields that fell to 3.37% encouraged the recovery of gold.
According to the 1-hour chart, we can see that gold is trading around 2,047. This is the level of strong resistance and a technical correction is likely to take place in the next few hours below the 21 SMA located at 2035.
On the other hand, in case there is a pullback towards the daily resistance around 2,055 or towards the top of the uptrend channel, it could be seen as a signal to sell with a target at 2,035 and towards the 200 EMA located at 2,004.
The eagle indicator has reached the extremely overbought zone of around 95 points. So, any technical bounce which could follow in the next few hours will be seen as a signal to sell.
Our trading plan for the next few hours is to sell below 2,047 with targets at 2,035 and 2,031. A daily close below +1/8 Murray could be seen as a signal to sell, with targets around the psychological level of 2,000.
The material has been provided by InstaForex Company – www.instaforex.com
Early in the European session, Gold (XAU/USD) is trading around 2,046.65 above the 21 SMA and within the uptrend channel formed since April 12. In the next few hours, gold could continue its rise, but it is showing signs of exhaustion.
Yesterday during the American session, gold reached $2,048.73. This level represents its highest peak since March 2022. XAU/USD reached this level in light of the softer-than-expected Producer Price Index (PPI) from the United States.
The weakness of the US dollar together with US Treasury bond yields that fell to 3.37% encouraged the recovery of gold.
According to the 1-hour chart, we can see that gold is trading around 2,047. This is the level of strong resistance and a technical correction is likely to take place in the next few hours below the 21 SMA located at 2035.
On the other hand, in case there is a pullback towards the daily resistance around 2,055 or towards the top of the uptrend channel, it could be seen as a signal to sell with a target at 2,035 and towards the 200 EMA located at 2,004.
The eagle indicator has reached the extremely overbought zone of around 95 points. So, any technical bounce which could follow in the next few hours will be seen as a signal to sell.
Our trading plan for the next few hours is to sell below 2,047 with targets at 2,035 and 2,031. A daily close below +1/8 Murray could be seen as a signal to sell, with targets around the psychological level of 2,000.
The material has been provided by InstaForex Company – www.instaforex.com
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