FX.co ★ Trading signals for GOLD (XAU/USD) on February 21-22, 2022: sell below 1,896 (SMA 21 - 5/8)

Gold (XAU/USD) is falling on Monday having reached 1,908.14 in the Asian session, the highest level since early June.

After failing to break above 5/8 Murray around 1,906, the metal made a technical correction to 1,887. Currently, it is trading at 1,895 around the 21 SMA.

XAU/USD is trading at 1,896.75. In case of a bounce to 1,906, the bullish tone could intensify again and the price could reach 6/8 Murray at 1,937.

In the opposite direction, as long as gold remains trading below 1,895, it could drop to the support 4/8 Murray at 1,875 (bottom of uptrend channel) and eventually reach the 200 EMA at 1,864.

The stock markets in Europe operate mostly in the red. The main focus remains on what can happen on the Ukrainian border. The increase in hostility could boost the demand for gold so that the price could rise towards 1,937.

Equity markets advanced on the news that Putin and Biden had agreed to hold a meeting. If something favorable comes out that eases the tension between Russia and Ukraine, gold could fall towards the support 1,864 (200 EMA) and reach 1,843.

Our trading plan for the next few hours is to sell below 1,895, with targets at 1,875 and 1,864. The eagle indicator on the 1-hour chart is giving a negative signal and gold is likely to make a technical correction.

Support and Resistance Levels for February 21 - 22, 2022

Resistance (3) 1,919

Resistance (2) 1,911

Resistance (1) 1,904

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Support (1) 1,888

Support (2) 1,879

Support (3) 1,872

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Scenario

Timeframe H4

Recommendation: sell below

Entry Point 1,895

Take Profit 1,875; 1,864

Stop Loss 1,905

Murray Levels 1,937 (6/8), 1,906(5/8), 1,875 (4/8), 1,843(3/8)

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