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 1752 Dollars per Troy Oz. Moving averages indicate a short-term bearish trend. Prices broke through the area between the signal lines upward, which indicates pressure from the sellers of the asset and a potential continuation of the fall from the current levels. At the moment, we should expect an attempt to develop a decline and test the support level near the 1745 area. Where can we expect a rebound and a continued rise in the price of GOLD with a potential target above the level of 1860.
XAU/USD Forecast and GOLD analysis October 7, 2021
An additional signal in favor of raising the XAU/USD quotes will be a test of the support area on the relative strength index (RSI). The second signal will be a rebound from the upper border of the ”Wedge” reversal pattern. Cancellation of the option to raise GOLD prices on October 7, 2021 will be a fall and a breakdown of the level of 1705. This will indicate a breakdown of the support area and a continued fall to the area below the level of 1675. Expect an acceleration of the rise in XAU/USD quotes with the breakdown of the resistance area and closing of the price above the level of 1785.
XAU/USD Forecast and GOLD analysis October 7, 2021 implies an attempt to test the support area near the level of 1745. Further, the growth of quotations with a target above the level of 1860 will continue. This will indicate a breakout of the support area and cancellation of the pattern. In this case, we should expect the GOLD price to continue to decline with a potential target below the level of 1675.
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