FX.co ★ Analysis of Gold for June 03,.2022 - Overbought condition and potential for the downside movement

Technical analysis:

Gold has been trading upside in last 24h hours and the price reached resistance at $1.870. I see potential for the downside rotation due to extreme reading and potential rejection of resistance.

Trading recommendation:

Due to the extreme upside reading and test of recent swing high, I see potential for the downside movement.

Watch for potential selling opportunities with the downside objective at $1.830

Stochastic is showing overbought condition and fresh bear cross, which is sign that sellers are taking control from buyers.

Key resistance is set at the price of $1.870