Gold (XAUUSD) Drops Sharply, May Find Support above $1,760

Gold (XAUUSD) Drops Sharply, May Find Support above $1,760

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

Gold (XAUUSD) Long-term Trend: Bearish
XAUUSD is in a downtrend. Since May 31, the upward move is facing resistance at $1900. In the first resistance the market decline to $1,860. On June 11, Gold faces another resistance which made it drop sharply. On June 1 downtrend, a retraced candle body tested the the38.2% Fibonacci retracement level. The retracement indicates that Gold will fall to level 2.618 Fibonacci extension or level $1,760.02.

XAUUSD – Daily Chart

Daily Chart Indicators Reading:
XAUUSD has fallen to level 29 of the Relative Strength Index period 14. It indicates that Gold has fallen to the oversold region of the market. It implies that the selling pressure has been exhausted and buyers are likely to emerge. The 21-day SMA and 50-day SMA are sloping upward indicating the uptrend.

Gold (XAUUSD) Medium-term bias: Bearish
On the 4 hour chart, the XAUUSD price is in a downward move. Since May 25, buyers have been struggling to break above the $1,900 resistance. On June 4 downtrend, a retraced candle body tested the the38.2% Fibonacci retracement level. The retracement indicates that Gold will fall to level 2.618 Fibonacci extension or level $1,771.09.

XAUUSD – 4 Hour Chart

4-hour Chart Indicators Reading
Gold is below the 20% range of the daily stochastic. It indicates that it has fallen to an oversold region of the market. The selling pressure is likely to be exhausted as buyers emerge. The 21-day SMA and the 50-day SMA are sloping downward indicating the downtrend.

General Outlook for Gold (XAUUSD)
XAUUSD’s price is in a downward move after rejection at level $1,900. The market has fallen to the low of above $1,760. If the current support holds, the uptrend will resume.


You can purchase crypto coins here. Buy Tokens


Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!

Author : Azeez Mustapha

Avatar

Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.