Technical analysis update: XAUUSD (17th June 2021)

Yesterday gold plunged to 1803.636 USD after FOMC decision. FED announced that it expects 2 rate hikes in 2023 and possibillity of tapering talks. We think market might take some time to proccess this information. In addition to that support at 1852 USD has been taken out and RSI, Stochastics and MACD are all bearish on daily timeframe. Gold travelled back below upper bound of its previous downward channel. This points to possible continuation of correction that could take us below 1800 USD pricetag. However, we expect the correction to be temporary as we think that bullish trend of higher degree remains intact. This is mainly due to soaring inflation which represents bullish environment for gold. Though, in short term we expect gold to struggle.

Here are our thoughts from 11th June 2021:

Here we warned investors about possible volatility in gold around FOMC date.

Here are prior developements from 26th May 2021:

Prior developements from 6th May 2021:

More prior developements 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.

Comment:

Gold is very oversold on hourly timeframe. Furthermore, gold shows first signs of being oversold on daily timeframe. Furthermore, we see a lot of accumulation at current price level between 1780 USD and 1800 USD. Odds of change in price direction to the upside are growing.