Gold Declines to $1,881 Low as It Faces another Rejection at $1,896 High
Key Resistance Levels: $1,900, $1,950, $2000
Key Support Levels: $1,750, $1, 700, $1,650
Gold (XAUUSD) Long-term Trend: Bullish
Gold is in a downtrend as it faces another rejection at $1,896 high. On April 18 uptrend; Gold was repelled at the $1,998 high. The bears broke below the moving averages to reach the low of $1,881. The gold price has fallen to the oversold region. The selling pressure is likely to reach bearish exhaustion. The current price level is the historical price level of February 25. On February 25 price action, the Gold price rebounded above the current support to reach the high of $2,070. Today, XAUUSD is rising as the current support holds.
Daily Chart Indicators Reading:
Gold is at level 40 of the Relative Strength Index for period 14. It has fallen to the bearish trend zone and below the centerline 50. The 21-day SMA and the 50-day SMA are sloping downward indicating the downtrend. XAUUSD has a bearish crossover. That is, the 21-day line SMA crosses below the 50-day line SMA indicating a sell order.
. Gold (XAUUSD) Medium-term bias: Bearish
On the 4-hour chart, Gold is in a downtrend. The bears broke below the moving averages and retested the $1,960 high. Later, Gold plunged to the low of $1,875 and resumed upward. The current downtrend has reached the oversold region. Meanwhile, on April 25 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that Gold will fall to level 1.272 Fibonacci extension or $1,875.24.
4-hour Chart Indicators Reading
XAUUSD is above the 40% range of the daily stochastic. The market is in a bullish momentum. The 21-day SMA and the 50-day SMA are sloping downward indicating the downtrend. The market has reached the oversold region.
General Outlook for Gold (XAUUSD)
Gold’s (XAUUSD) price is in a downward correction as it faces another rejection at $1,896 high. The downtrend has reached bearish exhaustion. Buyers will emerge in the oversold region to push prices upward.
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