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21.03.202405:17 Forex Analysis & Reviews: Trading Signals for GOLD (XAU/USD) on March 21-23, 2024: sell below $2,218 (7/8 Murray - reversal)

Exchange Rates 21.03.2024 analysis

Gold reached a new high around 2,222.61, a level that coincides with 7/8 Murray which represents a technical reversal. Currently, XAU/USD is trading at 2,202, above the 21 SMA, and above the 200 EMA showing signs of exhaustion.

In case that gold trades below 7/8 Murray in the next few hours, this will be seen as an opportunity to sell and we expect the metal to reach 6/8 Murray at 2,187. Finally, the price could fall towards the 21 SMA located at 2,168.

The statement regarding the monetary policy of the Federal Reserve gave strong bullish momentum to gold, breaking the symmetrical triangle pattern that had been formed since March 7.

Yesterday we pointed out this possibility in our analysis. Without a doubt, the signal of the triangle was fulfilled and thus, gold managed to gain more than $70 in a single day.

The US central bank said it is better to be cautious about the risks related to inflation and have decided to adopt a stance of keeping rates at 5.50% for longer.

This announcement caused investors to react against the USD, putting downward pressure on US Treasury bonds and consequently favoring gold.

Technically, if gold settles below the psychological level of 2,200, the outlook will be negative and we could expect a technical correction towards 2,125. On the contrary above 2,200, it is expected to reach 8/8 of Murray around 2,250.

In the next few hours, we could look for opportunities to sell below 2,218 and wait for the price to consolidate around 2,168 to buy with targets at 2,187 and finally, at 2,250.

The eagle indicator on the H1 chart is showing overbought signals. Hence, a technical correction is imminent which supports our bearish strategy and will be seen as an opportunity to sell below 7/8 Murray.

*A análise de mercado aqui postada destina-se a aumentar o seu conhecimento, mas não dar instruções para fazer uma negociação.

Dimitrios Zappas,
Analytical expert of InstaSpot
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