Gold Continues To Hold Above $1,622 as Sellers Retest Current Support

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Azeez Mustapha

Updated: 21 October 2022

Key Resistance Levels: $1,900, $1,950, $2000
Key Support Levels: $1,750, $1, 700, $1,650

Gold (XAUUSD) Long-term Trend: Bearish
Gold is in a downtrend but holds above $1,622 as sellers retest current support. On September 26, Gold declined to the low of $1,621 as bulls bought the dips. XAUUSD has resumed an upward correction as price broke above the moving average lines. However, the bullish momentum failed to breach the 50-day line SMA. On October 19, the bears pushed Gold to the current support. Sellers are attempting to breach the current support. Nonetheless, XAUUSD has reached the oversold region of the market indicating bearish exhuastion.

Gold Continues To Hold Above $1,622 as Sellers Retest Current Support — XAUUSD – Daily Chart

Daily Chart Indicators Reading:
Gold has fallen significantly as it reaches level 35 of the Relative Strength Index for period 14. The moving average lines are pointing southward indicating the downtrend. The price bars have consistently fallen below the moving average lines causing further decline.

Gold (XAUUSD) Medium-term bias: Bullish
On the 1-hour chart, Gold has fallen significantly to the low of $1,622 on October 19. The current decline has reached the oversold region of the market. The selling pressure is likely to subside. On October 19 downtrend, Gold corrected upward and a candle body tested the 50% Fibonacci retracement level. The correction implies that Gold will fall to level 2.0 Fibonacci extension or $1,626.96. From the price action, the market has declined to the low of $1,622 and resumed consolidation.

Gold Continues To Hold Above ,622 as Sellers Retest Current Support — XAUUSD – 1 Hour Chart

1-hour Chart Indicators Reading
XAUUSD has fallen to an oversold region below the 20% range of the daily stochastic. The market has reached bearish exhaustion. The moving average lines are sloping downward indicating the downtrend.

General Outlook for Gold (XAUUSD)
The current downtrend has reached bearish exhaustion as sellers retest current support. Gold is likely to reverse from the downtrend. Besides, buyers will emerge in the oversold region to push prices upward.

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