The yellow metal XAU / USD in 4-hour charts is trading within a symmetrical triangle. Gold could be losing bullish strength, given that the SMA of 21 is located at 1,803.57, the critical point will be if the price moves below the support of 1,795.
On the contrary, if gold continues to trade within the symmetric triangle pattern, we expect a bullish move in the next few hours. If it breaks the 21 SMA and consolidates above $1,805, a bullish move to the resistance zone of 1,835 could occur.
Tapering of the bond purchase program by the US central bank could put pressure on gold. On the contrary, if they continue buying 120 billion dollars in bonds for a longer time, Gold will be able to extend its upward trend.
According to the 4-hour chart, the price of XAU / USD is just above the triangle support, the key level. The psychological mark of 1,800 will be a decisive factor that gold could consolidate for longer around this level.
The technical reading of the eagle indicator suggests that gold could make a downward correction in the coming days, as it is showing an overbought signal. The key level is 2/8 of a murray below this level there will produce downward pressure all the time gold is located in this area.
A sharp break below the symmetrical triangle pattern and a consolidation below 1,795, a decline is expected to the 1/8 Murray support at 1,781 and to the strong support at 1,750, which prevented the decline of XAU / USD two times in the last few months.
Our recommendation is to buy above 1,805 with targets up to 2/8 murray resistance and sell below ,795 with targets at 1,781 and 1,750.
Support and Resistance Levels for July 12 - 13, 2021
Resistance (3) 1,1821
Resistance (2) 1,812
Resistance (1) 1,805
----------------------------
Support (1) 1,788
Support (2) 1,783
Support (3) 1,769
***********************************************************
Trading tip for XAU/USD for July 12 - 13, 2021
Buy above SMA 21 at 1,805 with take profit at 1,816 (2/8), stop loss below 1,1798.
Sell below 1,795 (symmetrical triangle), with take profit at 1,781 (1/8), stop loss above 1,801.
