Gold (XAUUSD) Upward Move Is Facing Rejection at Level 1740, the Downtrend May Resume

11 March 2021 | Updated: 11 March 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 is presently in a downward move. Today, the price is correcting upward and retesting the resistance at level 1740. In the previous downtrend on January 18; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that Gold is expected to fall to level 1.618 Fibonacci extension. That is the low of level 1700. The price action has confirmed this low but the downtrend will resume it faces rejection at level 1740.

XAUUSD – Daily Chart

Daily Chart Indicators Reading:
The price has fallen to level 39 of the Relative Strength Index period 14. It indicates that Gold is in the downtrend. The price has broken below SMAs which indicates that Gold is falling. The SMAs are sloping southward.

Gold (XAUUSD) Medium-term bias: Bearish
On the 4 hour chart, the XAUUSD is also falling. On March 8, the price fell to level 1680 but corrected upward. The upward correction was rejected at level 1740. On the upside, Gold will resume upward if price breaks the resistance at level 1740. The downtrend will resume if the resistance remains unbroken.

XAUUSD – 4 Hour Chart

4-hour Chart Indicators Reading
XAUUSD is above the 80% range of the daily stochastic. The market has reached the overbought region. The price is likely to fall. The SMAs are sloping downward indicating the downtrend.

General Outlook for Gold (XAUUSD)
XAUUSD is falling after rejection from level 1740. If price falls and breaks level 1680, the downtrend will resume. Otherwise, the current uptrend will continue on the upside.

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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.