Gold Weekly Price Analysis – July 02
The previous low at $1,786 has been retested, in case the support level of $1,811 is broken downside, then, support level of $1,786 and $1,761 will be tested. Should the $1,811 level holds, the resistance levels at $1,833, $1,852 and $1,888 may be the targets.
XAUUSD Market
Key levels:
Resistance levels: $1,833, $1,852, $1,888
Support levels: $1,811, $1,786, $1,761
XAUUSD Long-term Trend: Bearish
Gold is bearish on the long-term outlook. The last week bearish movement was between $1,833 resistance level and $1,811 support level. The support level of $1,786 was tested by the bearish pressure on 16 May with a strong bearish candle. The force of the bears could not break down the just mentioned level due to opposition from the bulls. On July 01, the bulls reacted against the bearish pressure with the formation of hammer candle pattern on daily chart.
The price is trading below the 9-periods EMA and 21-periods EMA with the two EMAs descending towards the south and as a sign of bearish movement in the Gold market. The previous low at $1,786 has been retested, in case the support level of $1,811 is broken downside, then, support level of $1,786 and $1,761 will be tested. Should the $1,811 level holds, the resistance levels at $1,833, $1,852 and $1,888 may be the targets.
XAUUSD Medium-term Trend: Bullish
Gold is bullish in the 4-hour chart. The yellow metal was bearish last week and the support level of $1,786 was tested. It seems the bears’ pressure is exhausted at the mentioned support level. On July 01, bulls demonstrated an increase in momentum with the formation of strong bullish candles. The former resistance level of $1,811 was broken upside, the price is increasing towards $1,833.
The price is trading above the two EMAs which indicates that the bulls are trading at increased momentum. The Relative Strength Index period 14 is at 47 levels with the signal line pointing upside to indicate buy signal. The bulls may take over the market soon.
