The price of the yellow metal XAU/USD is trading at the level of 1,781 at the time of writing this article, is trading within a pattern called a symmetrical triangle. We expect a consolidation above 1,790, it is the key level for a bullish momentum towards the 6/8 zone of murray.
On the other hand, a break to the downside of the symmetrical triangle pattern on the 4-hour chart could trigger bearish pressure that could carry it to the support of 4/8 murray, around $ 1,750.
The SMA of 21 is located at 1,780. Since June 17, it has been consolidating around this area of the moving average. Since the triangle pattern is about to confirm the break, we should expect a consolidation below or above from the 21 SMA to be able to take a position in Gold.
The key level of resistance is located at 1,789. Last week, it tried several times to consolidate above this level and failed. Gold is expected to stabilize later at 5/8 of murray around 1,781. This point will be important to watch.
This week to be able to buy, we should wait for a closing in daily charts above 1,790. The upward momentum will be confirmed on condition that the metal trades above this level with targets towards 6/8 of murray around 1,812 and until 1,856, zone of EMA 200.
The technical reading of the eagle indicator is showing a bearish signal for Gold for the next few days. If the symmetric triangle above 1,790 breaks, it would confirm the signal and it will be a good opportunity to buy.
Support and Resistance Levels for June 28 – 29, 2021
Resistance (3) 1,806
Resistance (2) 1,798
Resistance (1) 1,789
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Support (1) 1,772
Support (2) 1,762
Support (3) 1,756
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Trading tip for XAU/USD (gold) for June 28 - 29, 2021
Buy if breaks above 1,790 (symmetrical triangle) with take profit at 1,812 (6/8) and 1,856 (EMA 200), stop loss below 1,780.
Sell below 1,875 (SMA 21) with take profit at 1,760 and 1,850 (4/8), stop loss above 1,781.
The material has been provided by InstaForex Company - www.instaforex.com