XAUUSD – Signs of Reversal

<p>XAUUSD, Day – At the start of the week, gold prices have fallen by $27, breaking down the key support to 1696. Meanwhile the rate of new infected cases and deaths from Covid-19 in the United States began to improve. The numbers have dropped to the lowest level since the outbreak in April.</p>
<p>Apart from this many countries around the world are ending the lockdown period. That means that the manufacturing and service sectors will be able to resume operations, even though some restrictions will continue until the end of the year at least. This is an attempt to get an economic recovery as soon as possible.</p>
<p>It should not be forgotten that the central bank’s QE measures against Covid-10 may become a side effect that will follow after this. The gold price is one asset that may have been directly affected.</p>
<p>From the technical perspective, after the rise of gold prices seen in April the past 3 days, we have identified a reversal. In the H1- and H4 chart we can see the increase of bearish bias as the price is breaking through the lower border of the BB as the MACD lines turned negative with signal line above histogram, suggesting the increase of negative momentum.</p>
<p>In the Daily time frame, a double top has been posted, with the first support target being at the low area seen last week around 1670.</p>
<p><strong>Click </strong><a href="https://www.hotforex.com/en/trading-tools/economic-calendar.html"><strong>here</strong></a><strong> to access the HotForex Economic Calendar</strong></p>
<p><strong>Chayut Vachirathanakit<br />
Market Analyst – HF Educational Office – Thailand<br />
</strong></p>
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