Technical analysis update: XAUUSD (17th September 2021)

Yesterday gold dropped to its support level around 1750 USD. Previously we noted that we were getting strong notion regarding gold being stuck between 1750 USD and 1840 USD for indefinite amount of time. We maintain this notion also today. However, in the big picture we remain bullish on gold. We think that gold is going to break above its resistance around 1835 USD eventually. Though, next week investors should be cautious as volatility in gold can present itself with upcoming FED meeting. It is possible that gold will experience more selling pressure that could escalate to break out to the downside from current support level. If breakout occurs then it will force us to abandon our short term price target of 1850 USD.

Technical analysis
RSI, MACD and Stochastic are all bearish. Though, RSI needs to be observed in the following trading sessions as it is flattening. Next week we will look for potentional reversal in it. ADX is still low suggesting neutral trend. Though it shows first signs of awekening. Current closest support is around 1750 USD while major support area is around 1675 USD. Then closest resistance is around 1835 USD while major resistance currently sits around 1915 USD.

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.

Trade active:

Gold broke below 1750 USD overnight. However, it retraced back above this price level. We continue to be bullish.