Technical analysis update: XAUUSD (21st July 2021)

Gold is losing trend as is reflected in low ADX value. MACD, RSI and Stochastics reversed suggesting trouble for gold. At the same time gold's price returned to downward moving channel through its upper bound (acting before as support). This upper bound now acts as resistance and takes important role for the short term. We expect price to move along this upper bound for indefinitely before finally moving higher to our short term price target.

New important levels to be watched:
Because of weakening trend we draw conclusion that price could potentionally fluctuate between Support 1 and Resistance 1 for indefinite amount of time.

Previous important levels from 14th July 2021:
We now see that price has moved below Support 1. "Resistance 2" is really "Resistance 1", it is typo.

We think investors should be aware of ECB meeting this week. We expect price to remain volatile for its duration.

Disclaimer: This analysis is not intended to encourage buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.