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#1 11-06-2019 16:25:39

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2532
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XAU/USD: Are we heading for a sustainable bearish reversal on gold?

XAU/USD: Are we heading for a sustainable
bearish reversal on gold?


Gold (XAU/USD) has been rising sharply since around 23 May, from $1270 to a high of $1348 last week, a 6% increase.

However, an examination of the daily chart highlights risks of a bearish reversal, which seems to be confirmed with the decline of the metal since the beginning of the week.

The $1340-50 zone on which gold was blocked last week had previously blocked the upward trend visible from the trough of 15 August to the peak on 20 January.

We can thus identify a double long-term peak, which could announce a return of the decline towards the 2019 annual low in the $1265 zone, close to the 200-day moving average.

Prior to that, the key psychological threshold of $1300, and the current 100-day moving average on this threshold could provide support in the event of a correction.

From a fundamental point of view, and on the contrary, the maintenance and accentuation of concerns about global growth in connection with the trade war is a factor that pleads for the rise of gold, which could therefore resume its rise after a few days of correction.

However, if the economic horizon becomes clearer, the scenario described in this article will gain credibility.

Lastly, it should be noted that in the event of an increase above $1340-50, another major obstacle will be around $1360-65, an area in which several peaks were marked between January and April 2018, before the 2016 peak around $1375.

Daily XAU/USD chart:

http://www.forex-central.net/forum/userimages/XAUUSD-Daily.png


"Anything worth having is worth going for - all the way." - J.R. Ewing

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