Technical analysis update: XAUUSD (28th June 2021)

After FOMC decision and subsequent fall of gold XAUUSD has been in neutral trend for more than a week now. This is well visible on 1-hour time frame and simultaneously reflected in low ADX value. On 1-day time frame RSI reversed from oversold area and gained bullish direction. MACD slowly loses momentum but Stochastics remains bearish. ADX value remains high and due to a reset soon. Price of XAUUSD steadily holds above strong support. Our short term price target remains 1810 USD per ounce.

1-hour timeframe:

Here we can see low ADX value.

Our thoughts from 18th June 2021:

Our thoughts from 17th May 2021:

Our thoughts from 16th April 2021:

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.

Trade active:

Many people may feel perplexed by drop in XAUUSD today. However, we expect that this drop to lower short term low (in price) will be accompanied by drop in RSI (but not below its short term low). This would then manifest as divergence and eventually lead to reversal in bearish trend of lower degree.

Comment:

Here is the divergence we mentioned yesterday:

Trade closed: target reached