GOLD continue to move as part of the correction and the formation of a large inverted “Head and Shoulders” reversal pattern. At the time of the publication of the forecast, the price of GOLD is 1935 Dollars per Troy Oz. Moving averages indicate a short-term bullish trend. Prices went up the area between the signal lines, which indicates pressure from buyers of the asset and a potential continuation of the rise from the current levels. At the moment, we should expect an attempt to develop a decline and test the support level near the 1855 area. Where can we expect a rebound and continued growth in the price of GOLD with a potential target above the level of 1975, while the overall target of the model is the area of 2145.
XAU/USD Forecast and GOLD analysis January 7, 2021
An additional signal in favor of raising the XAU/USD quotes will be a test of the support line on the relative strength index (RSI). The second signal will be the completion of the formation of the right “Shoulder” of the model. Cancellation of the growth option for GOLD prices on January 7, 2021 will be a fall and a breakdown of the level of 1775. This will indicate a breakdown of the support area and a continued fall to the area below the level of 1705. Expect to accelerate the growth of XAU/USD quotes with the breakdown of the resistance area and closing of the price above the 1985 level, which will indicate a breakdown of the “Neck” line of the reversal pattern.
XAU/USD Forecast and GOLD analysis January 7, 2021 suggests an attempt to test the support area near the level of 1975. Further, continued growth of quotations with a target above the level of 2145. Cancellation of the option of raising GOLD prices will be stronger than the fall in the asset value in the markets and a breakdown of the level 1775. This will indicate a breakdown of the support area. In this case, we should expect the GOLD price to continue to decline with a potential target below the level of 1705.
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