On August 6 we pointed out in the daily analysis the imminent fall of gold below the strong resistance of 1832, we invite you to read the article and obtain some details regarding this strategy.
Since the beginning of the trading week, we noticed two consecutive bearish candlesticks below the resistance level of 1.831. Yesterday, gold broke the support level of 1812. This is a negative signal for gold. It could fall in the next few days to the 1.750 level.
Gold is trading below the 200 EMA and below the 6/8 Murray level that had acted as support for gold since August 27. Now, it has turned into a resistance level. Below 1.812 the downward pressure could accelerate.
The support level is located at 1.795 around the SMA of 21. If the gold breaks and consolidates below, it will be a sign of a change in trend that could fall to the support of 1781 (5/8) and if the pressure bearish prevails could fall to support at 1.750 (4/8).
The fall in gold is due to the technical rebound that USDX is making, which has added downward pressure. Additionally, Treasuries yield contributed to the decline in gold. The 10-year government bonds yield is at 1.38%, close to the August high. Gold lost luster with investors as a safe haven asset and they turn to risky assets.
In the short term, as long as it remains below 1.812, the outlook will continue to be bearish for gold.
The eagle indicator is showing a bearish signal and overbought levels. A deeper drop may occur if gold consolidates below 1,781, level of 5/8 Murray and key support with targets at 1750.
Support and Resistance Levels for September 08 - 09, 2021
Resistance (3) 1840
Resistance (2) 1816
Resistance (1) 1805
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Support (1) 1781
Support (2) 1775
Support (3) 1769
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Trading tip for Gold for September 08 - 09, 2021
Sell if pullback at 1812 (6/8), with take profit at 1781 and 1750, stop loss above 1823.
Sell below 1795, with take profit at 1781 and 1750, stop loss above 1803.
The material has been provided by InstaForex Company - www.instaforex.com