FX.co ★ Analysis of Gold for February 02,.2021 - Broken mini upward channel and potential for the drop towards $1.831

HSBC argues to look past the RBA surprise decision today

The firm says that while it was a surprise that the RBA announced a QE extension today, it simply "mirrors similar commitments by other G-10 central banks, including the Fed, and should therefore not be a significant long-term driver of the currency".

Adding that they still see AUD/USD advancing to 0.81 by the end of the year amid improving global growth prospects and higher commodity prices in general.

While the RBA did surprise somewhat earlier today, it wasn't so much a major one as they are largely seen as bringing forward the decision to extend QE.

Further Development

Analyzing the current trading chart of Gold, I found that sellers are in control and that there is the breakout of the upward mini Pitchfork channel, which is good sign for further downside continuation.

Watch for selling opportunities on the rallies with the downside targets at the price of $1,831 and $1,803

Key Levels:

Resistance: $1,875

Support levels: $1,831 and $1,803