FX.co ★ Trading Signal for Gold (XAU/USD) for June 7-8, 2023: sell below $1,977 (21 SMA - symmetrical triangle)

Gold is trading around 1,964.44 below the 21 SMA located at 1,974. According to the daily chart, we can see that gold has found a strong support zone around 7/8 Murray located at 1,937. Gold is expected to continue rising in the next few days and it could reach the psychological level of $2,000. We could even expect it to reach the +1/8 Murray zone located at 2,062.

In case gold tries to break the 21 SMA located at 1,974 and fail, we could expect a technical correction and the price could fall towards 1,945, the area where gold left a gap on June 5 and the bottom of the symmetrical triangle.

In the chart above, we can see the formation of a symmetrical triangle. In case the instrument breaks below this triangle and consolidates below 1,937, we could expect it to reach the bottom of the downtrend channel around 1,901. It could even reach the EMA 200 located in 1,888.

On the contrary, if the metal breaks the symmetrical triangle, closes above the 21 SMA on the daily chart, and additionally makes a sharp break of the downtrend channel, this price action could confirm a bullish acceleration and the price could reach the psychological level of $2,000. So, we could even expect it to reach +1/8 Murray located at 2,062.

In the next few days, we expect gold to consolidate below 1,977 because the market will be riveted to the monetary policy decision of the Federal Reserve. Disappointing news or a moderate announcement could favor gold and it could rebound to the price levels of April 2023.

The eagle indicator has reached oversold levels on the daily chart, thus generating a bullish signal for the next few days, but we should wait for the confirmation above 1,980 to resume buy orders.