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FX.co ★ Trading Signal for GOLD (XAU/USD) for January 16 - 17, 2023: sell below $1,911 or in case of pullback at 1,927/37 (+1/8 Murray - overbought)

Trading Signal for GOLD (XAU/USD) for January 16 - 17, 2023: sell below $1,911 or in case of pullback at 1,927/37 (+1/8 Murray - overbought)

Trading Signal for GOLD (XAU/USD) for January 16 - 17, 2023: sell below $1,911 or in case of pullback at 1,927/37 (+1/8 Murray - overbought)

Early in the American session, Gold (XAU/USD) is trading around 1,916.42 with a bullish bias but is showing signs of exhaustion.

On the 4-hour chart, we can see the latest Japanese candlesticks, a bearish engulfing, and a Doji which would be a sign of a probable technical reversal. So, the price could reach the 21 SMA around 1,897.

The daily pivot point is located around 1,911. A daily close below this level could mean the start of a strong technical correction that could bring the price down to support levels of 1,875 (8/8 Murray).

Gold is showing signs of overbought. We can see on the 4-hour chart that since January 5, the metal has been oscillating around 90-95 points of reference of the eagle indicator. This week, a strong technical correction is likely to occur in case the price reaches 1,930 and 1,937 and settles below these levels.

The zone of 1,937.50 represented by + 2/8 Murray means a strong technical correction. It is likely that any technical bounce that approaches this zone will be seen as a signal to sell.

With a daily close below the psychological level of 1,900, we could expect the metal to continue lower and reach 1,875. The price could even fall to support of 7/8 Murray at 1,843.

Our trading plan for the next few hours is to sell below 1,911 or wait for a pullback to 1,928 and 1,937 to sell with targets at 1,906 and 1,890.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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