Will Gold drop to 1820? (Long term analysis)
I my previous analysis I said that, If XauUsd fails to stay above the 1940-1945 zone, is a high probability of a drop to 1900.
At the time of writing, Gold is trading in the 1900 zone which is the previous low and offers support, but being August, not much is happening in the short term.
That's why, I will look at a weekly chart to try to figure out what could happen in the next 2-3 weeks.
Looking at the weekly chart we can see that after the drop under the rising trend line back in June, bulls tried to take control again and failed precisely in the horizontal 1980 zone resistance and at this moment we can consider a lower high is in place.
At this moment 1930 zone is resistance and rallies to this zone should be sold.
A break under 1900 could lead to a substantial drop for Gold and the price could reach even the next important support at 1820.
In the short term, there are chances of a small reversal from here, but again, as said, is August, a very low liquidity month.
At the time of writing, Gold is trading in the 1900 zone which is the previous low and offers support, but being August, not much is happening in the short term.
That's why, I will look at a weekly chart to try to figure out what could happen in the next 2-3 weeks.
Looking at the weekly chart we can see that after the drop under the rising trend line back in June, bulls tried to take control again and failed precisely in the horizontal 1980 zone resistance and at this moment we can consider a lower high is in place.
At this moment 1930 zone is resistance and rallies to this zone should be sold.
A break under 1900 could lead to a substantial drop for Gold and the price could reach even the next important support at 1820.
In the short term, there are chances of a small reversal from here, but again, as said, is August, a very low liquidity month.
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