Hello all. Looking at XAUUSD we can see that our previous bearish analysis with 18% drop came to fruition, pushing the price of the yellow metal towards the 200 week EMA at around $1700. Link for that trade is posted below.
The 200 week EMA provided a strong support and we can anticipate a bounce towards the $1770 price mark which is the closes resistance and the 23.6% fib level.
Another important level to keep an eye on is the fib golden pocket (61.8%-65%) with a price sitting at around $1930. If this bullish scenario plays out gold will recover 12%.
This is possible because historically the $1770 price level has provided major support for gold, and also the weekly rsi is in the overbought territory.
If gold falls below $1770, I believe it is possible that the price of gold can go as low as $1200 per oz. This price also corresponds with the 200 Week EMA, and historically the strongest and lowest support zone for gold. If this bearish scenario plays out, gold will see another 30% drop.
Thanks for reading, and stay tuned. Enjoy.
The 200 week EMA provided a strong support and we can anticipate a bounce towards the $1770 price mark which is the closes resistance and the 23.6% fib level.
Another important level to keep an eye on is the fib golden pocket (61.8%-65%) with a price sitting at around $1930. If this bullish scenario plays out gold will recover 12%.
This is possible because historically the $1770 price level has provided major support for gold, and also the weekly rsi is in the overbought territory.
If gold falls below $1770, I believe it is possible that the price of gold can go as low as $1200 per oz. This price also corresponds with the 200 Week EMA, and historically the strongest and lowest support zone for gold. If this bearish scenario plays out, gold will see another 30% drop.
Thanks for reading, and stay tuned. Enjoy.
