Yesterday XAU / USD fell to the low of 1,745, the level of August 12. This happened due to the increase in US Treasury yields and the advance of the US dollar that is now above the 200 EMA in the 4-hour chart. Yields of 10-year bonds jumped to 1.35%, matching last week's high.
Gold had consolidated in a range above 1,780 since August 16. This level used to be strong support, but yesterday this level was broken sharply. Later on, gold dropped to the level of 1/8 of murray around 1,745 / 50.
Now gold does not have signs of a technical rebound. It is likely that whenever the price makes an upward movement. there will be a selling opportunity. Since now the strong resistance is located at 1,782, level of SMA 21, a pullback towards this level will be a good opportunity to sell.
On the contrary, If gold falls towards the support level of 1,745 or 1,750 in the next few hours and consolidates above this level, it would be a good opportunity to buy. This area represents a psychological level. In turn, the eagle indicator is in the oversold zone. This is a sign that in the next few days there may be a technical rebound.
Our short-term outlook for gold remains bearish as long as the price holds below the 200 EMA located at 1,795. Any attempt to approach this level will be considered a good selling opportunity. On the other hand, while the price is above of 4/8 of murray, we have the opportunity to buy.
The technical reading of the eagle indicator since August 23 has shown a decrease in the volume and relative strength of the market when it reached 95. You can see a bearish line on the chart where the moving average of the indicator has moved until reaching the level of 5 yesterday. All this suggests that we can expect a correction in gold in the short term.
Support and Resistance Levels for September 17 - 20, 2021
Resistance (3) 1,792
Resistance (2) 1,781
Resistance (1) 1,764
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Support (1) 1,748
Support (2) 1,733
Support (3) 1,721
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Trading tip for GOLD for September 17 - 20, 2021
Sell if there is a pullback from 1,782 (SMA 21) with take profit at 1,765 and 1,750 (4/8), stop loss above 1,791.
Buy if gold rebounds off 1,750 or 1,745 with take profit at 1,765 and 1,782, stop loss below 1,740.