GOLD
Time frame: H4
Technical analysis: The chart shows that the price of gold is moving in a short-term downtrend. Last week, after PMI data in the services sector fell below expectations, gold was able to test Fibonacci 61.8. At this level, many traders have taken their profits form the long positions and therefore the price dropped sharply and left a large spike behind. For this reason, strong resistance R1 is formed there. Currently, the price is again approaching this resistance and at the same time coincides with the falling diagonal projected along the last two highs.
If the price manages to meet the aforementioned resistance, we can see another downward movement.
Indicators: At this stage, 50 and 200 EMAs play the role of price support.
RSI is nearing overbought, which supports the Sell scenario.
SL: 1536
Alternative scenario: If the price manages to break through the diagonal resistance and the R1 level, then it will continue to test the R2 and R3 levels. Breakout of these levels, will push gold price to test at least the previous peak at 1550.
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