FX.co ★ Analysis of Gold for September 21,.2020 - First downside target at the price of $1.933 has been reached. Potentia for new downside swing towaards the level of $1.920

Comments by UK health secretary, Matt Hancock

• This is a 'tipping point'
• Any action will be different to last time
• There are relatively few cases in schools and work
• We can keep schools open

Not really anything new on offer by Hancock with his remarks above. The government is under pressure to curb the spread of the virus in recent weeks, but are trying to do so while maintaining a setting that will not decimate the economy.

As I discussed in the previous review, the Gold managed to sell off from the resistance trendline as I expected and test my first downside targets at $1,937 and $1,933.

Further Development

Analyzing the current trading chart of Gold, I still see more room for the downside movement and potential for test of next downside targets at $1,920 and $1,906.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got VIX and Cocoa today and on the bottom Dax and Gasoline RBOB.

Gold is on on the negative territory and got strong downside momentum.

Key Levels:

Resistance: $1,956

Support levels: $1,920 and $1,906