Gold markets have gotten absolutely crushed during the trading session on Friday, as we continue to see money run into the US dollar, and the bond market in general. With that being said, the market could very well see a scenario where gold drops below the 200 day EMA, and then breaks below the $1800 level. If it does, that could begin a significant bearish move in this market, and it is worth noting that the candlestick on Friday was extraordinarily bearish. If we do in fact close at the absolute bottom of the daily range, that does suggest that we should continue to follow through to the downside.
Gold Price Predictions Video 19.07.21
That being said, if we could turn around and rally, we need to take out the top of the candlestick for the trading session on Friday to have any real hope of seeing the market rally for a longer-term move. The market would then go looking towards the $1860 level, which is scenario that the gap started at. That should be massive resistance, so it goes without saying that if we break above there, then it is likely that we go looking towards the highs and continue to go much higher in general.
With that being said, the market is likely to continue to be beholden to what the US dollar is doing in general, so with that being the case I think what we are seeing here is a scenario where gold could be very difficult on. If we break down from here, then we go looking towards $1750 level. That is an area that has been both support and resistance, and therefore I think would be the next magnetic target.
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This article was originally posted on FX Empire
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