Technical Analytics Report

XAU/USD: Technical Analysis Report 08 March 2021

XAU/USD: Technical Analysis Report 08 March 2021

The asset remains under pressure

 Current Trend

Gold prices are consolidating near their nine-month lows at the beginning of the week, maintaining the “bearish” impetus, which can be traced in the dynamics of the instrument since February 23. The growing yields on US bonds, as well as the reluctance of the US Fed to interfere in this process, exert significant pressure on gold’s positions. According to the Chair of the American regulator Jerome Powell, the current surge in bond market yields is associated with the natural process of economic recovery and is to a lesser extent caused by any speculation.

Additional pressure on gold at the end of last week was exerted by a strong February labor market report. Nonfarm Payrolls in February increased by 379K after increasing by 166K in the previous period. The unemployment rate fell from 6.3% to 6.2%, which also turned out to be better than the neutral forecasts.

Support And Resistance

Bollinger Bands in D1 chart demonstrate a stable decrease. The price range expands from below, making way for new local lows for the “bears”. MACD is trying to reverse upwards but preserves its previous sell signal (located below the signal line). Stochastic demonstrates similar dynamics, preparing for a breakout of “20”. The indicator readings signal in favor of corrective growth in the short and/or ultra-short term. One should wait for clarification of the situation in the market to open new positions.

Resistance levels: 1720.00, 1735.13, 1753.57, 1769.59.

Support levels: 1703.07, 1687.15, 1675.00, 1660.15.

Trading tips

To open long positions, one can rely on the breakout of 1720.00. Take-profit – 1753.57–1769.59. Stop-loss – 1690.00. Implementation time: 1-2 days.

The rebound from 1720.00 as from resistance with the subsequent breakdown of 1703.07 can become a signal to new sales with targets at 1675.00–1660.15. Stop-loss – 1725.00.

Scenario

 Timeframe: Intraday

Recommendation: Buy Stop

Entry Point: 1720.05

Take Profit: 1753.57, 1769.59

Stop Loss: 1690.00

Key Levels: 1660.15, 1675.00, 1687.15, 1703.07, 1720.00, 1735.13, 1753.57, 1769.59

Alternative Scenario

Timeframe: Intraday

Recommendation: Sell Stop

Entry Point: 1703.05

 Take Profit: 1675.00, 1660.15

Stop Loss: 1725.00

Key Levels: 1660.15, 1675.00, 1687.15, 1703.07, 1720.00, 1735.13, 1753.57, 1769.59


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