Official site of the most popular forex trading expert advisor...

Trading Signal for Gold (XAU/USD) for May 09-10, 2022: buy above $1,851 (200 EMA)


Gold (XAU/USD) is trading at 1,866, having bottomed out at 1,856. It remains under strong bearish pressure as a result of rising Treasury yields accompanied by weakness in the equity market.

US Treasury bond rates hit new highs in years and continue to head higher. It is a factor that puts gold under downward pressure. However, we could expect a technical bounce in the next few hours if gold manages to break and consolidate above 1,878.

On the other hand, a key support is located at 1,851 which is the low of May 2. A technical bounce around this area will be an opportunity to buy gold and the price could reach 6/8 Murray at 1,875.

The 21 SMA located at 1,878 acts as strong resistance for gold. Besides, we can see a small downtrend channel in the short term, where the top is located around 1,875.

Above 1,875-1,885, there is a strong confluence of resistance. Once this level is surpassed, we could expect gold to enter a bullish phase.

If in the next few days gold breaks the downtrend channel formed on April 13 on the 4-hour chart, it will be a positive signal to buy. A close above 1,890 could mean a trend reversal and the price could reach 200 EMA around 1,912 and could go as high as 7/8 Murray at 1,937.

A daily close below 1,851 could lead to an acceleration to the downside and the metal could reach the 5/8 Murray level at 1,812. On the other hand, around 1,856 on the daily chart, there is the 200 EMA which acts as dynamic support.

As long as the price remains above the 200 EMA (1,850/56), it is expected to recover from the downward pressure and to reach 1,937 (7/8) and even the psychological level of $2,000 (8/8) in the coming days.

Trading analysis offered by RobotFX and Flex EA.