Technical analysis update: XAUUSD (29th July 2021)

We correctly predicted that gold would move along the upper channel line for few days before moving higher. Yesterday gold decoupled from the upper channel line to the upside. RSI and MACD are bullish. Stochastics is also reversing to the bullish side. We expect gold to continue go higher and subsequently reach our price targets. Our short term price target of 1850 USD remains in place. Similarly, our medium price target of 1875 USD also remains in place.

Developements from 26th July 2021:

Here we suggested that gold would move along the upper channel line before finally moving higher.

Developements from 30th June 2021:

Here we hinted at divergence between price and RSI. We also correctly predicted end of correction and reversal in price direction to the upside.

Developements from 26th May 2021:

Here we suggested that gold was reaching overbought zone in the short term. We also hinted at growing odds of shortlived correction.

Developements from 16th April 2021_

Here we correctly predicted move to the upper channel line.

Disclaimer: This analysis is not intended to encourage any 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:

Due to high correlation of EURUSD with gold we view recent reversal in EURUSD to the upside (from its recent lows) as good developement for price of gold.

Comment:

Green line = 20-day Simple Moving Average
Blue line = 50-day Simple Moving Average
Red line = 100-day Simple Moving Average

Comment:

We expect price to break above Resistance 1 at 1834.195 USD within following trading seassons.