Gold has been forming lower lows and lower highs over the past two weeks, with the 50-day simple moving average (SMA) preventing major declines once again along with the 20-day SMA near 1,945 last Friday.
The price maintained its position above the broken bearish channel, which is a good sign for July’s upleg continuation. The progressing bullish cross between the 20- and 50-day SMAs is endorsing that case as well. Yet, the negative trajectory in the RSI and the MACD is reflecting some persisting weakness in demand.
Traders are waiting for the price to go above 1,985 and beyond the 50% Fibonacci retracement of the previous downleg before focusing on 2,000. If the bulls claim the latter, the price could accelerate towards the 2,050 bar and perhaps attempt to touch the record high of 2,079.
On the downside, the area of 1,935-1,950, which encapsulates the shorter-term SMAs, the tentative ascending trendline from June’s lows and the channel’s upper band, will be closely watched. The 23.6% Fibonacci mark is placed there too. Therefore, a downfall below that region could motivate an aggressive sell-off towards the 1,892-1,900 zone, where the 200-day SMA is converging. A deeper fall could take a halt somewhere between 1,865 and 1,855.
All in all, gold is currently showing mixed signals, with investors expected to stay patient until the price crosses above 1,985 or slides below 1,935-1,950.
XAUUSD BUY Scalp 1947 – 1945
✔️ TP1: 1955
✔️ TP2: 1960
✔️ TP3: 1965
❌ SL: 1940
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- Source: https://www.tradingview.com/chart/XAUUSD/ygI2MFKb-Gold-has-a-good-support-zone-but-patience-needed/
