Gold is consolidating below the 200 EMA located at 1,771 and below the downtrend channel in the 4-hour chart that originated on September 13 and has kept gold under strong downward pressure ever since.
Additionally, gold has formed a second bearish channel since October 1 and has been consolidating between a range of 1,765-1,745. Investors are alert to crucial data in the US NFP to be published tomorrow, to deftermine its next move.
The short-term outlook is slightly bullish. To gain more strength, the precious metal should remain above 1,771, where the EMA of 200 is located. If this level is broken sharply, this price action could trigger an upward movement to 6/8 of a murray at around 1,812.
On the contrary, a consolidation below $ 1,740 would leave gold vulnerable to more losses, hence the price could fall again to the low of 1,725 and to 3/8 of murray located at 1,718.
As long as gold remains below the 200 EMA and below both downtrend channels, each bullish momentum made by gold will be an opportunity to sell, targeting 1,750. The price could fall to the bottom of the downtrend channel at 1,740.
The oscillator of the eagle indicator is showing a positive divergence for gold. An increase in a trade volume is observed, so the price is moving above an uptrend channel, which could be a bullish signal for the next few hours, but its growth is limited until 1,763 and up to 1,771 because the eagle indicator is approaching the overbought level.
Support and Resistance Levels for October 07 - 08, 2021
Resistance (3) 1,776
Resistance (2) 1,769
Resistance (1) 1,757
----------------------------
Support (1) 1,750
Support (2) 1,738
Support (3) 1,733
***********************************************************
Trading tip for GOLD for October 07 - 08, 2021
Buy above 1,750 (4/8) with take profit at 1,763 and 1,771 (EMA 200), stop loss below 1,744.
The material has been provided by InstaForex Company - www.instaforex.com