Gold continues to touch the bearish targets 6/7/2023

Strong selling pressures dominated gold’s movements after the main resistance levels published during the previous report at 1930, were able to limit the bullish bias, and gold prices failed to close above it to return within a rapid decline to the desired target of 1913, recording its lowest level at $1914 per ounce.

Technically, and by looking closely at the 4-hour chart, we find the continuation of the negative intersection of the simple moving averages. Still, we notice that the stochastic indicator has disappeared into the overbought areas, and therefore we may witness some fluctuation until obtaining the required bearish direction.

From here, with steadfast daily trading below 1930, the bearish trend remains valid and effective, targeting 1913, the first target represented by Fibonacci correction 61.80%, knowing that breaking the mentioned level extends the losses to be waiting for touching 1909 and 1900, initial next stations, taking into consideration that the next official target around 1887.

Consolidation above 1930, with at least an hourly candle closing above 1930, will immediately stop the suggested bearish scenario, and gold prices will recover temporarily to retest 1845, the 50.0% correction.

Note: Today we are awaiting high-impact economic data issued by the US economy, “jobs data in the non-agricultural private sector,” “ADP report,” service purchasing managers, “OPEC meeting,” and “the report issued by the International Energy Agency on oil stocks.” We may witness high volatility at the time of issuance of the news.

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: 1909.00	R1: 1930.00
S2: 1901.00	R2: 1945.00
S3: 1887.00	R3:  1951.00