The Gold (XAU/USD) is trading above the 21 SMA on 4-hour charts, oscillating within a bullish channel that originated after falling to the $1,750 level. Gold has had a recovery from 0/8 ($1,750) of murray to 2/8 ($1,812). It is likely that it is forming a technical correction for a new bullish wave.
The short-term trend of gold remains bullish as long as it is trading above the $ 1,800 level. The target will be the 2/8 of murray and the 200 EMA located at $1,839.
The resurgence of global economic concerns triggered an influx of risk-averse cash flows into safe-haven assets such as US Treasuries, gold, and USD / JPY. This uncertainty could drive the upside of gold in the coming weeks.
According to the chart, we can see the key level that we must watch is the $1,797 area. There is the SMA of 21. If gold XAU / USD makes a technical rebound at this level, we expect an upward movement to the resistance zone of $1,812 and $1,843 (3/8).
Conversely, if gold consolidates below the 21 SMA and trades below $1,795, it will be a sell signal with the target of 1/8 of murray around $1,781.
The technical reading of the eagle indicator is in the overbought zone. A bearish movement is likely in the coming days as part of a correction for a new bullish wave.
Support and Resistance Levels for July 08 - 09, 2021
Resistance (3) 1,818
Resistance (2) 1,810
Resistance (1) 1,804
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Support (1) 1,786
Support (2) 1,778
Support (3) 1,760
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Trading tip for XAU/USD (Gold) for July 08 - 09, 2021
Buy if rebound SMA of 21 at 1,795 , with take profit at 1,1812 (2/8), stop loss below 1,790.
Sell if breaks 1,795 (SMA 21), with take profit at 1,781 (1/8), stop loss above 1,800.