Gold Reaches the Overbought Region, Faces Rejection at $1,949

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

Gold (XAUUSD) Long-term Trend: Bearish
Gold (XAUUSD) is in a downward correction as it faces rejection at $1,949. Gold price is trading between the moving averages. It indicates that XAUUSD will be in a range-bound move above the 50-day line but below the 21-day line moving average. The market will resume an upward move if price breaks above the 21-day line moving average. The downtrend will resume if price breaks below the 50-day line moving average. Meanwhile, on March 15 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that Gold will fall but reverse at level 1.272 Fibonacci extension or $1,853.

Daily Chart Indicators Reading:
Gold is at level 52 of the Relative Strength Index for period 14. XAUUSD has fallen but is still in the uptrend zone and capable of rising to the upside. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend. The price bars are between the moving averages indicating the range-bound move.

Gold (XAUUSD) Medium-term bias: Bearish
On the 4-hour chart, the Gold is in a downtrend. After the initial decline to the low of $1,904, the market resumed a sideways move. Meanwhile, on March 16 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that Gold will fall but reverse at level 1.272 Fibonacci extension or $1,851.86.

4-hour Chart Indicators Reading
XAUUSD is above the 80% range of the daily stochastic. The market has reached the overbought region. Sellers will emerge in the overbought region to push prices down. The 21-day SMA and the 50-day SMA are sloping horizontally indicating a sideways move.

General Outlook for Gold (XAUUSD)
Gold’s (XAUUSD) price has resumed downward correction as it faces rejection at $1,949. The market will soon decline as price reaches the overbought region.

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