XAUUSD How low can it go? $1670 possible?

Following yesterday's strong sell-off, it would be useful to see how far Gold can correct to in order to be prepared for the next big buy entry.

This is a highly speculative projection though based on the previous time (early March) that Gold posted such a strong decline.

As you see it was when the MACD on the 1D chart turned bearish. Gold broke the 1D MA50 on March 12 and continued aggressively lower, even broke the 1D MA200 and found relief (and buyers) on the 2 month Support trend-line (green line). The fundamentals played a big part as it was when the U.S. announced strong economic stimulus to save the falling stock markets and the Fed lowered the interest rates twice in a week. The expected inflation made investors rush into Gold heavily.

Right now, the 1D MA50 is holding, in fact the price rebounded exactly on the (dashed black) trend-line that is holding since the March bottom. We can assume that if the MA50 breaks, we may see another crash wave as low as the 1D MA200 and the 2 month Support, which is now at $1670. That would be the most optimal long-term buy entry.


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