Baxia Markets
May 10, 2022

Gold continues on a downtrend

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XAUUSD lost 1.54% in the previous trading sessions, which adds up to a 7.4% loss in 16 trading sessions. The pair could find support at $1850.51 which is the previous low reached just five sessions ago. The gap between the short and long-term moving averages is expanding, strengthening the short signals.


The Bollinger bands are very wide, and high volatility can be expected in the short term, the with of the bands will allow the pair to continue the downwards trend if it is unable to find support at $1,850, the lower band is currently at $1,825 which could also act as a support level if the $1,850 price line is broken.


Gold May 9th 2022


The relative strength index is at 34%, which will also allow the pair to move downwards a bit more before entering the oversold status, at which point we would expect the price to bounce. Our parabolic SAR indicator suggests that the price will continue to move downwards in the upcoming sessions.


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