In the early American session, XAU / USD (Gold) is trading below +1/8 of murray and above the 200 EMA in 1-hour charts. The bias is bullish, but showing signs of exhaustion. It is very likely there will be a correction in the next few hours.
Most of the crosses of the currency market as well as the stock markets show small fluctuations and low volatility because trading floors in the United Kingdom and in the United States are closed for public holidays. Amid the thin market, Gold is likely to consolidate below the bearish channel of $1,909.
In daily charts, XAU / USD maintains an overall upward trend. The advance of the gold metal has slowed at the $ 1,910 barrier. A confirmation above it would point to more rises as high as $1,937. There is +2/8 of murray, an extremely overbought area.
In case of trading below the psychological level of $1,900, gold would lose upward strength, and in the short term there could be a correction to the 200 EMA around $1,886. This will be a key point, as it will give Gold a new upward momentum to break the 1,910 zone again.
However, if the price is fixed below $1,886, a downward extension could be expected so that the price could reach the level of $1,812. There is the strong support of 6/8 of murray, the zone of a technical rebound.
As long as gold trades above $1,886, the metal is expected to make further attempts to continue rising until the $1,937 zone. A change in trend could occur if gold consolidates below $1,880.
Our recommendation is to sell below $1,909, or if it consolidates below the 21 SMA around $1,903. Sell with targets at $1,886. The eagle indicator is showing signs of exhaustion and a probable bearish movement.
Support and Resistance Levels for May 31, 2021
Resistance (3) 1,935
Resistance (2) 1,919
Resistance (1) 1,911
----------------------------
Support (1) 1,895
Support (2) 1,886
Support (3) 1,879
***********************************************************
Trading tip for XAU/USD (gold) for May 31, 2021
Sell below 1,909 (strong resistance), with take profit at 1,886 (EMA 200) stop loss above 1,915.
