Gold and the selling pressure continues 7/2/2023

Gold prices collided with the previously broken support level, which was transformed into the de facto resistance level at 1880, limiting the limited bullish tendency to force gold to decline again and retest 1862.

Technically, we tend in our trading to be negative, relying on the stability of the price below the resistance above level, in addition to the negative intersection of the simple moving averages that pressure the price from above and support the bearish curve of prices, stimulated by the negative signals coming from the relative strength index and its stability below the mid-line 50 .

Therefore, the bearish scenario will remain the most preferred during today’s session, targeting 1862, considering that breaking it increases and accelerates the strength of the bearish daily trend, opening the door to visit 1853 and 1845, respectively.

The stability of intraday trading below 1880, 23.60% correction, and below 1890 are necessary conditions for preserving the bearish context and consolidation above 1890, which leads gold directly to retest the 1900 barrier.

Note: Today, we are waiting for the speech of the “Chairman of the Federal Reserve”, which has a significant impact, and we may witness fluctuations in prices during the issuance of the speech.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1863.00	R1: 1882.00
S2: 1853.00	R2: 1891.0
S3: 1844.000	R3:  1901.00