Hello everyone, as we all know the market action discounts everything :)
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On Jul 30 I posted an idea about the XAU/USD price with 2 different scenarios, and I explained about the Ascending triangle and what would happen in case of a breakout, today we see that analysis come to life.
The XAU/USD had a big bearish movement in the last couple of days as we see that the price has dropped from 1811.423 to 1677.003 in the last 4 days alone, the price was able to bounce back up a Lil bit, and now its trending around 1745.034 range.
The Bearish movement is explained by the breakout that happened in the ascending triangle pattern that the market has formed not too long ago.
What will happen with The Market Price right now ?? is this bearish movement going to continue or will we see the Bulls fighting back and driving the price back up again?
Scenario 1 :
After the bearish movement in the last few days, the gold has gone back up a bit and it's trading at 1745.034 near the first resistance line at 1759.830 if the price would go up to that resistance line we will see a battle between the Bulls and the Bears over control of the market.
If The bulls were to take control we could be seeing the price breaking out that resistance line and heading near the second resistance line at 1800.500,
If the Bears were able to hold the movement control then the price will probably be headed to the first support line at 1726.208.
Scenario 2 :
The Bears showed a lot of power in the last few days, If they were able to keep that control over the market then they will be headed to test the Bulls at the first support line at 1726.208 where the outcome will determine the movement of the market for the next period of time.
If a breakout happens and the Bears kept the control then we will be seeing a bigger drop in price where the market price will be going to reach the second support line at 1683.310 and if that bearish moment continued then even hitting the support line at 1647.460.
Different Technical indicators showing this right now :
1) The Market Price below the 5 10 20 50 100 200 MA and EMA (Strong Bearish Sign)
2) The MACD is below the zero line showing a bearish state in the market, with a negative crossover between the MACD line and the Signal line
3) The RSI has reached the oversold zone at 28.94, we could be seeing a bounce back up in price, no divergences were found
Support & Resistance points :
support Resistance
1) 1726.208 1) 1759.830
2) 1683.310 2) 1800.500
3) 1647.460 3) 1831.133
Fundamental point of view :
Hurting sentiment Monday has been sharp falls in gold prices as investors attempt to digest the growing number of Covid-19 cases, primarily in China, as well gains for the U.S. dollar after Friday’s strong non-farm payrolls release.
The number of cases in China has hit a six-month high, with millions of people now put under lockdown and mass testing being conducted across the country.
Gold prices has slumped to the lowest level since March, falling below $1,700/oz before posting a minor recovery to currently change hands for $1,746.70/oz, 0.9% lower, around 4% lower over the last week.
The sharp drop in Asian trading raised speculation of a forced liquidation, but the jobs report also resulted in the dollar and bond yields trading higher, never a good combination for commodities.
Gold extended its post-NFP slump and witnessed aggressive selling during the early part of the Asian session on Monday. Friday's stronger-than-expected US monthly jobs report fueled fears that the Fed could start tapering its asset purchases later this year, which, in turn, weighed heavily on the non-yielding yellow metal. The headline print showed that the US economy added 943K new jobs in July, surpassing even the most optimistic estimates. Adding to this, the previous month's reading was also revised higher to 938K from 850K reported earlier.
Further details revealed that the US unemployment rate dropped from 5.9% in June to 5.4% during the reported month, beating expectations of 5.7%.
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
_________________________________Make sure to Like and Follow if you like the idea_________________________________
On Jul 30 I posted an idea about the XAU/USD price with 2 different scenarios, and I explained about the Ascending triangle and what would happen in case of a breakout, today we see that analysis come to life.
The XAU/USD had a big bearish movement in the last couple of days as we see that the price has dropped from 1811.423 to 1677.003 in the last 4 days alone, the price was able to bounce back up a Lil bit, and now its trending around 1745.034 range.
The Bearish movement is explained by the breakout that happened in the ascending triangle pattern that the market has formed not too long ago.
What will happen with The Market Price right now ?? is this bearish movement going to continue or will we see the Bulls fighting back and driving the price back up again?
Scenario 1 :
After the bearish movement in the last few days, the gold has gone back up a bit and it's trading at 1745.034 near the first resistance line at 1759.830 if the price would go up to that resistance line we will see a battle between the Bulls and the Bears over control of the market.
If The bulls were to take control we could be seeing the price breaking out that resistance line and heading near the second resistance line at 1800.500,
If the Bears were able to hold the movement control then the price will probably be headed to the first support line at 1726.208.
Scenario 2 :
The Bears showed a lot of power in the last few days, If they were able to keep that control over the market then they will be headed to test the Bulls at the first support line at 1726.208 where the outcome will determine the movement of the market for the next period of time.
If a breakout happens and the Bears kept the control then we will be seeing a bigger drop in price where the market price will be going to reach the second support line at 1683.310 and if that bearish moment continued then even hitting the support line at 1647.460.
Different Technical indicators showing this right now :
1) The Market Price below the 5 10 20 50 100 200 MA and EMA (Strong Bearish Sign)
2) The MACD is below the zero line showing a bearish state in the market, with a negative crossover between the MACD line and the Signal line
3) The RSI has reached the oversold zone at 28.94, we could be seeing a bounce back up in price, no divergences were found
Support & Resistance points :
support Resistance
1) 1726.208 1) 1759.830
2) 1683.310 2) 1800.500
3) 1647.460 3) 1831.133
Fundamental point of view :
Hurting sentiment Monday has been sharp falls in gold prices as investors attempt to digest the growing number of Covid-19 cases, primarily in China, as well gains for the U.S. dollar after Friday’s strong non-farm payrolls release.
The number of cases in China has hit a six-month high, with millions of people now put under lockdown and mass testing being conducted across the country.
Gold prices has slumped to the lowest level since March, falling below $1,700/oz before posting a minor recovery to currently change hands for $1,746.70/oz, 0.9% lower, around 4% lower over the last week.
The sharp drop in Asian trading raised speculation of a forced liquidation, but the jobs report also resulted in the dollar and bond yields trading higher, never a good combination for commodities.
Gold extended its post-NFP slump and witnessed aggressive selling during the early part of the Asian session on Monday. Friday's stronger-than-expected US monthly jobs report fueled fears that the Fed could start tapering its asset purchases later this year, which, in turn, weighed heavily on the non-yielding yellow metal. The headline print showed that the US economy added 943K new jobs in July, surpassing even the most optimistic estimates. Adding to this, the previous month's reading was also revised higher to 938K from 850K reported earlier.
Further details revealed that the US unemployment rate dropped from 5.9% in June to 5.4% during the reported month, beating expectations of 5.7%.
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.