Gold has charted a key day reversal as the yellow metal is seeing some profit-taking. Subsequently, XAU/USD is expected to correct lower short-term, in the opinion of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.
See – Gold Price Analysis: Three factors to drive XAU/USD higher – DBS Bank
Uptrend at $1844 is the next stop on the downside
“Gold’s high of $1916.91 has not been confirmed by the daily RSI and in fact, yesterday’s price action constituted a key day reversal.”
“We look for a correction lower to take hold and would allow for some slippage back to $1844, the short-term uptrend and the 200-day ma at $1842.”
“The 55-day ma at $1794 is expected to be the maximum downside we see and we then look for resumption of the long-term uptrend.”
“Longer-term, we target the $1959/65 November 2020 high and the 2021 high. These guard the 1989/78.6% retracement and the 2072 2020 peak. Longer-term, we believe that this will also be overcome.”
“Key support is the $1718 2091-2021 uptrend. While above here we will assume a longer-term upside bias.”
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