04.02.202206:52 Forex Analysis & Reviews: Trading signals for GOLD (XAU/USD) on February 4-7, 2022: sell in case of pullback from 1,812 (4/8- 200 EMA)

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Gold is trading within an uptrend channel but capped below the 200 EMA and below the 4/8 Murray acting as strong resistance.

A pullback towards the 200 EMA and the top of the downtrend channel could give us an opportunity to sell gold, with targets towards 3/8 Murray and the bottom of the uptrend channel.

Yesterday in the American session, gold fell to the level of 1.788, confirming the uptrend channel. From this level, it bounced back and is now consolidating above the 21 SMA with a positive bias.

This sudden drop in gold towards the level of 1,888 was due to the news from the Bank of England and the European Central Bank that updated their monetary policies. The BOE was the most aggressive, raising the interest rate by 25 basis points and announcing the end of quantitative easing, while the ECB kept its policy unchanged.

Traders take refuge in gold awaiting the Non-Farm Payrolls data to be released early in the American session. Uncertainty regarding employment data could give gold strength so that the price could break the resistance at 1,812. A daily close above the 200 EMA and 4/8 Murray could accelerate the move higher towards 5/8 Murray around 1,828.

Conversely, a technical bounce around the support zone of 3/8 Murray could be an opportunity to buy again around 1,796, with targets at 1,812.

The eagle indicator is hovering in the oversold zone. Any bounce above the uptrend channel is likely to be considered a buying opportunity.

Our trading plan is to sell below 1,812 with targets at 1,796, or wait for a correction to support of 3/8 Murray to buy with targets at 1,812.

Support and Resistance Levels for February 4 - 7, 2022

Resistance (3) 1,828

Resistance (2) 1,821

Resistance (1) 1,812

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Support (1) 1,796

Support (2) 1,781

Support (3) 1,772

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Scenario

Timeframe H4

Recommendation: sell if pullback

Entry Point 1,812

Take Profit 1,796

Stop Loss 1,817

Murray Levels 1,781 (2/8) 1,796 (3/8) 1,812 (4/8) 1,828 (5/8)

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