Gold (XAUUSD) Faces Rejection at Level $1,800, Resumes a Downward Correction

Azeez Mustapha
20 August 2021 | Updated: 20 August 2021

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

Gold (XAUUSD) Long-term Trend: Bearish
Gold price is in an upward move. The upward move is facing an initial obstacle at the $1,800 resistance zone. On the upside, if price breaks above the resistance zone, the Gold price will be above the moving averages. In other words, the bullish trend zone is where prices tend to rise. However, the market is being rejected below the moving averages which suggests a possible decline. The bulls are likely to face stiff opposition above the recent high.

XAUUSD – Daily Chart


Daily Chart Indicators Reading:
The market has fallen to level 49 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand. The 21-day SMA and 50-day SMA are sloping downward indicating the downtrend.

Gold (XAUUSD) Medium-term bias: Bearish
On the 4 hour chart, the Gold price is correcting upward. The bulls could not break above the $1,800 overhead resistance. Therefore, the Gold price is consolidating below the overhead resistance. Meanwhile, on August 17 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that Gold will rise but reverse at level 1.272 Fibonacci extension or level $1,816,63.

XAUUSD – 4 Hour Chart

4-hour Chart Indicators Reading
Gold is above the 50% range of the daily stochastic. It indicates that the market is in the bullish trend zone. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend.

General Outlook for Gold (XAUUSD)
XAUUSD price is in an upward move. The uptrend is stalled below the $1 800 overhead resistance. Gold price is facing rejection at the 21-day SMA. XAUUSD is likely to be in a downward correction for a few more days.

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
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 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!
Azeez Mustapha

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.