Overview- Yellow metal is heading to the downside and breaking each and every support. Well, bears got succeed to make it a downside and the bias has been shifted from upside to downside. It’s just the starting of a downfall we will see panic selling below $1750 level and a valid breakout of this level will open the way towards the $1730 and $1710 level in the near term
Gold faces the downside momentum We can see that the pair is maintaining its strong bearish side in the market, the pair is showing downside momentum and still trading below all the major and minor EMA lines. The way bears are reacting it seems like they are approaching the$1710 level. The gold price broke out of the falling wedge pattern this week. The Short-term trend is down so in a downtrend market always sell on the high and covert every rise as a selling.
Technical analyst: From the technical perspective we can see that bears breached the 200 SMA line first time since June 2020 i.e. multi month’s low. The market is falling down and every swing is making successively lower lows and lower highs. The odds are in favor of bears and we will keep our view bearish on the pair. The chart is showing that the gold is breaking the neckline and start falling downward which gives confirmation of the bearishness in the market. The major support $1730 followed by $1700 whereas and resistance level 1800 followed by $1830
On 1 hourly chart pair is trading below all the major and minor EMA lines which is a recent development. The RSI indicator is showing near to 30 levels which is favoring the bears. The MACD indicator is showing a bearish crossover of the zero lines which is also favoring the bears.
Trade idea: Based on chart and studies we would recommend to our traders and investors that go for sell at 1775-78 target is $1750 & $1700 sl is $1805 level.
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