XAU/USD, (Gold) in the Asian session is trading above the 21 SMA and above the symmetrical triangle after having broken through the upper sloping line, now consolidating above this level, to confirm the pattern, it should make a pullback to 1892 and bounce above this level.
The psychological level of 1900 is now strong resistance accompanied by +1/8 of murray (1906) which acts as the first stop for the bullish force. Breaking through this level would be the maximum of this month with 1916 as an upward objective.
Yesterday, we saw strong volatility in the currency and equity markets, gold rebounded from the low of 1870 to the current price zone. At the moment, it is trading at 1897, a correction to the dynamic support of the 21 SMA is likely.
On the contrary, if it returns below 1889, where the SMA of 21 is located on 4-hour charts, gold could once again be vulnerable and fall to the area of the upward sloping line of the symmetric triangle around 1875.
Given that XAU/USD is located above the EMA of 200 (1851), the bullish force is expected to continue to prevail in the medium term. Therefore, our outlook will continue to be bullish if gold remains above the 21 EMA in the short. Below this level, a correction to 1850 is expected in the short term.
Our recommendation is to buy above 1891 and sell if the pair consolidates below the SMA of 21 around 1889, the objectives we have indicated in the graph above.
Support and Resistance Levels for June 11 – 14, 2021
Resistance (3) 1938
Resistance (2) 1919
Resistance (1) 1908
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Support (1) 1887
Support (2) 1878
Support (3) 1859
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Trading tip for XAU/USD (Gold) for June 11 - 14, 2021
Buy if it rebounds from 1891 (SMA of 21), with take profit at 1906 (+1/8) and 1916, stop loss below 1885.
Sell below 1889 (SMA 21), with take profit at 1885 and 1875 (8/8), stop loss above 1895.00
The material has been provided by InstaForex Company - www.instaforex.com