Trading Signal for XAU/USD (GOLD) for July 15 - 16, 2021: Sell below $1826.44

analytics60f045459ded0.jpg

The price of the yellow metal is located around the area of the 200 EMA in 4-hour charts, after having registered a high of 1,833.54. It is now making a technical correction, consolidating at the key level of the moving average.

At the fundamental level, Jerome Powell, chairman of the Federal Reserve, rejects the need to reduce bond purchases. He also highlighted that rising inflation, as reflected in surprisingly strong prices for consumers and producers, is related to the reopening. Therefore, it is temporary.

This information could affect the strength of the US dollar. In turn, gold could gain more upward force until reaching the level of 1,843 (3/8). However, the eagle indicator is showing an overbought level, so we must wait for this correction to repurchase.

XAU/USD is moving within an uptrend channel, as you can see in the chart. It has paused, but in the short term it could resume its climb towards the 1,843 zone, because the price is showing signs of exhaustion. We believe that the zone of 2/8 support could be a good buying point.

This 2/8 murray level around 1,812 has acted as a strong resistance for a long time. Now it has become a strong bottom. So, it will be a good area to buy with targets at 1,825, 1,833 and 1,843 in the medium term.

The key level to watch is the 200 EMA zone around 1,826.44. If the price of gold consolidates below this zone, it will be a good selling opportunity targeting 1,812.

Support and Resistance Levels for July 15 - 16, 2021

Resistance (3) 1,856

Resistance (2) 1,845

Resistance (1) 1,836

----------------------------

Support (1) 1,820

Support (2) 1,811

Support (3) 1,803

***********************************************************

Trading tip for XAU/USD (Gold) for July 15 - 16, 2021

Buy above EMA 200 at 1,828, with take profit at 1,833 and 1,843 (3/8), stop loss below 1,823.

Sell below 1,825 (EMA 200), with take profit at 1,812 (2/8), stop loss above 1,830.

The material has been provided by InstaForex Company - www.instaforex.com

Pages