Weekly and Daily Upward Momentum losing steam
Gold is in a long term Uptrend Bias. However, for 3 consecutive weeks, XAUUSD is creating Lower Highs and Lower Lows. June 5, 2020 is crucial in terms of closing as it may set the tone for the next week.
For now, Gold is a Sell on NEAREST Lower Resistance and Buy on previous LOWER Support as the best trading strategy. Watch out for the break of the Lower Bollinger Band on the Daily Chart because once broken, the downward momentum within the Long Term Uptrend will accelerate. I will also watch closely if 1690 and 1700 level will become Resistance instead of Support in the coming Hours and Days.
For me, I will use the 5 SMA Daily as dynamic Resistance - if prices remains to be below this average.
Also, 50 SMA Daily is acting as Dynamic Support for its Medium-Term Uptrend. Once broken, I will be looking at 200 SMA Daily as Dynamic Support for the Long-Term Uptrend Bias.
For now, Gold is a Sell on NEAREST Lower Resistance and Buy on previous LOWER Support as the best trading strategy. Watch out for the break of the Lower Bollinger Band on the Daily Chart because once broken, the downward momentum within the Long Term Uptrend will accelerate. I will also watch closely if 1690 and 1700 level will become Resistance instead of Support in the coming Hours and Days.
For me, I will use the 5 SMA Daily as dynamic Resistance - if prices remains to be below this average.
Also, 50 SMA Daily is acting as Dynamic Support for its Medium-Term Uptrend. Once broken, I will be looking at 200 SMA Daily as Dynamic Support for the Long-Term Uptrend Bias.