FX.co ★ Analysis of Gold for May 07,.2021 - Overbought condiiton and potential for downside rotation towards $1.815 and $1.801

Technical analysis:

Gold has been trading upside after the NFP today but we got major buying climax. Buying climax in the rising market is negative and there is potential for the downside movement.

Trading recommendation:

Watch for potential selling opportunities with the downside target at $1.814 and $1.801.

Additionally, there is test of the rising parallel line, which is another stronger resistance.