XAUUSD SELL CHANNEL & BULLS ACTION 1700 LEVEL PULLBACK STRATEGY
As we have discussed in our last chart, economic recovery hope is pulling back gold and USD as both served as a safe asset during the worst market condition. Gold is short with a small retracement to its target of 1700. But at this level buyers can enter to target 1800 mark which is possible due to prolonged recovery and vaccination process. Gold has neglected US-China trade tensions and HongKong issues for two strong reasons; world economies reopening / recovery hope, Improved results of Vaccine, and RSI slope has turned bearish from the overbought position. Gold remained bearish from the end of last week. We have explained how Gold price breakout is on the card all the way to 1680, the key support level for current Gold movements.
As we have seen a lot of back-and-forth trading. The $1725 level has offered a little bit of support, but quite honestly I think there is even more support closer to the $1700 level. Any type of bounce air could get people buying this market and trying to aim towards the $1750 level. This is an area that has a lot of resistance built into it towards the $1760 level. Underneath the $1700 level, there is the 50 day EMA , which of course also offers a significant amount of support. Ultimately, this is a market that I think eventually goes higher but needs to build up a bit of pressure in order to do so. I would not read too much into Monday candlestick due to the fact that it was a shortened session with less liquidity than usual. If we break down below the 50 day EMA , then it is likely we go looking towards even more support at the $1600 level underneath which would have the 200 day EMA reaching towards it as well.
As we have seen a lot of back-and-forth trading. The $1725 level has offered a little bit of support, but quite honestly I think there is even more support closer to the $1700 level. Any type of bounce air could get people buying this market and trying to aim towards the $1750 level. This is an area that has a lot of resistance built into it towards the $1760 level. Underneath the $1700 level, there is the 50 day EMA , which of course also offers a significant amount of support. Ultimately, this is a market that I think eventually goes higher but needs to build up a bit of pressure in order to do so. I would not read too much into Monday candlestick due to the fact that it was a shortened session with less liquidity than usual. If we break down below the 50 day EMA , then it is likely we go looking towards even more support at the $1600 level underneath which would have the 200 day EMA reaching towards it as well.