Gold (XAUUSD) Faces Rejection at $1,800 Resistance, Downtrend Likely

Gold (XAUUSD) Faces Rejection at $1,800 Resistance, Downtrend Likely

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

Gold (XAUUSD) Long-term Trend: Bullish
XAUUSD upward move is facing rejection at the $1,834.19 high. On June 18, the XAUUSD fell to the $1,764 support. Gold price retested the support before the upward move. Gold is facing rejection because the market has reached the overbought region. The price broke the 21-day SMA but faced rejection at the 50-day SMA.

XAUUSD – Daily Chart

Daily Chart Indicators Reading:
Gold has risen to level 57 of the Relative Strength Index period 14. It indicates that Gold is in the uptrend zone and above the centerline 50. The 21-day SMA and 50-day SMA are sloping downward indicating the downtrend. A break above the 50-day SMA will propel Gold to rise.

Gold (XAUUSD) Medium-term bias: Bullish
On the 4 hour chart, the Gold price rose to $1,833 high but reached the overbought region. Meanwhile, on July 13 uptrend, a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that Gold will rise to level 2.0 Fibonacci extension. The market is declining as price reaches the overbought region.

XAUUSD – 4 Hour Chart

4-hour Chart Indicators Reading
Gold is above the 80% range of the daily stochastic. It indicates that the market has reached the overbought region. Sellers have emerged to push price downThe 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend.

General Outlook for Gold (XAUUSD)
XAUUSD’s price is retracing as price reaches the overbought region. The market retraced to $1,823 low and resumed fluctuation below the recent high. Gold price is facing a second rejection. If price falls and breaks below the SMAs, the selling pressure will accelerate to the previous low. Otherwise, the current fluctuation will continue below the resistance.

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Author : Azeez Mustapha

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