The yellow metal XAU / USD, which is trading below the 21 SMA and below the 200 EMA, is under downward pressure as it is trading within a downtrend channel on 4-hour charts.
On Thursday, Gold fell to the low of 1,791. From this level, it has been rebounding and could now face a dynamic resistance from the 200 EMA around 1,806-1,812. This zone could keep Gold under downward pressure.
A pullback towards the top of the bearish channel (1,814) will favor a bearish scenario. However, in case of a break and consolidation above 1,814, there could be an upward movement towards the resistance zone of 1,843 (3/8).
Therefore, with any attempt to break the 1,812 level and if gold fails to consolidate above this level, will be used as a selling opportunity with targets at 1,790 and 1,781, the level of the lower line of the bearish channel and the zone of 1/8 of murray.
If you look at the chart when gold peaked at 1,833 on July 14, the 200 EMA acted as a very strong top. Now it is below this zone, which could limit the upside and favor our bearish outlook.
The eagle indicator is showing a bearish signal. If the price of gold remains below 1,812, it will be a good short-term selling opportunity.
Support and Resistance Levels for July 23 - 26, 2021
Resistance (3) 1,827
Resistance (2) 1,817
Resistance (1) 1,811
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Support (1) 1,796
Support (2) 1,790
Support (3) 1,786
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Trading tip for XAU/USD (Gold) for July 23 - 26, 2021
Sell below 1,806 (SMA 21), or if pullback 1812, with take profit at 1,790 and 1781 (1/8), stop loss above 1,818.
The material has been provided by InstaForex Company - www.instaforex.com