The yellow metal, XAU / USD, is trading above the 21 SMA on 4-hour charts, after having broken the descending wedge pattern as you can see on the chart. Gold now has strong support in the 1,770 area, the bias may turn bullish and continue to rise until the 1,812 area.
Last week, gold had formed a symmetrical triangle, its target was at the 0/8 murray support in the $ 1,750 zone. From this level, the price is now bouncing and it has managed to break the 21 moving average, the details of this strategy you can review in this article.
Gold maintains a bullish momentum, now consolidating above the technical pattern, and also awaiting the US labor market figures. As long as it remains above 1,770, gold is expected to continue rising in the short term.
Non-farm payrolls and the unemployment rate could have a high impact on the market and gold can be exposed to high volatility. If the data is negative for the US dollar, XAU / USD could rise to the strong resistance of 1,812, the zone of 2/8 of murray.
On the contrary, better data that analysts expect could put pressure on gold and drag it down to the support of 0/8 of murray at 1,750. This area is a psychological level that we hope can give us a chance to buy.
Our recommendation is to buy if gold makes a pullback towards the 21 SMA around 1,770. Waiting for this point will be a good opportunity to buy at a low price and be able to take profit at 1,812, the zone of strong resistance of 2/8.
Below 1,770, you can sell very prudently with targets at about 1,750, 0/8 murray zone. The eagle indicator is overbought, so there is a possibility of a technical correction.
Support and Resistance Levels for July 02 - 05, 2021
Resistance (3) 1,801
Resistance (2) 1,792
Resistance (1) 1,784
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Support (1) 1,774
Support (2) 1,767
Support (3) 1,757
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Trading tip for XAU/USD (Gold) for July 02 - 05, 2021
Buy if rebound SMA of 21 at 1,770, with take profit at 1,812 (2/8), stop loss below 1,762
Sell if breaks 1,765 (SMA 21), with take profit at 1,750 (0/8), stop loss above 1,772.
