Gold is waiting for a stronger signal 23/8/2023

The technical outlook is unchanged for the second session in a row, with the continuation of the sideways range between 1889 and 1904.

Today’s technical vision indicates the possibility that we will witness an attempt to establish support around 1885 that may lead gold prices to achieve some temporary rise, and this does not contradict the general bearish trend; with close consideration, the simple moving averages continue to exert negative pressure on the price from above, in addition to the stability of trading Intraday sub-resistance 1905.

3ith the continuation of daily trading stability below the main resistance at 1913, the previously broken support, and now converted to the Fibonacci correction resistance level of 61.80%, the bearish scenario remains the most preferred, provided that we witness a clear and strong break of the support level of 1885, targeting 1875 and 1873, next official stations that may determine the next directional movement.

To remind you that the upside move and the price’s consolidation with the closing of the 4-hour candlestick above 1913, that postpones the chances of a decline, and gold prices may witness a temporary recovery with the aim of re-testing 1922 and 1929, and the gains may extend later towards 1940.

Note: Stochastic is trying to get positive crossover signals.

Note: The risk level may be high.

Note: Today, we are waiting for high-impact economic data issued by the US economy and England, such as “Services and Manufacturing PMI”, and from Canada, later in today’s session, we are waiting for “Retail Sales” in addition to the summit of the “BRICS” group We may witness high price volatility.

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: 1885.00	R1: 1903.00
S2: 1875.00	R2: 1913.00
S3: 1867.00	R3:  1922.00