Gold – Testing major resistance

Can gold push back into bullish territory

Not only did Gold not recover from the NFP blow on Friday, but things got a whole lot worse on Monday.

The yellow metal has since recovered the bulk of the losses sustained during illiquid trade at the start of the week but that may not improve the outlook.

Gold is currently testing that major support – $1,750 – from below and a rebound off this level could be viewed as confirmation of the initial breakout and give a very bearish signal.

The fact that this roughly coincides with the 50 fib level further adds to its significance as a major resistance level .

A move above here doesn’t necessarily put gold back in bullish territory, there’s still a few obstacles to overcome, but it would be a big step.

Further resistance may be found around $1,770 (61.8 fib) or $1,790/$1,800, where prior support combines with a cluster of moving averages on the 4-hour chart.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.

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Source: https://www.marketpulse.com/20210811/gold-testing-major-resistance/