Due to reports of a potential second wave of coronavirus outbreaks in China and Japan, investors may turn to gold as a safe haven. China reported 17 new cases as of May 10, and closed the entrance to the city of Shulan, in Jilin province in the northeast of the country. The city is on the border with North Korea, and the closure has raised questions about how the isolated country is coping with the coronavirus pandemic. Meanwhile, fears of a second wave of the epidemic have emerged in South Korea as the country announced another 27 cases on 10 May, the highest since March.
GOLD/USD, 30 min
Pivot: 1700.50
Analysis:
Provided that the price is below 1705.00, please follow these recommendations:
Time frame: 30 min
Recommendation: short position
Entry point: 1700.50
Take Profit 1: 1690.00
Take Profit 2: 1681.00
Alternative scenario:
In case of breakout of the level 1705.00 and the consolidation of the price above this level, follow the recommendations below:
Time frame: 30 min
Recommendation: long position
Entry point: 1705.00
Take Profit 1: 1712.00
Take Profit 2: 1722.00
Comment:
While the level 1705.00 is a resistance, you should look for a volatile price movement with a bearish bias.
Key levels:
Resistance
Support
1722.00
1690.00
1712.00
1681.00
1705.00
1676.00
GOLD/USD, D1
Pivot: 1707.00
Analysis:
As long as the price is above 1655.00, please follow these recommendations:
Time frame: D1
Recommendation: long position
Entry point: 1707.00
Take Profit 1: 1745.00
Take Profit 2: 1790.00
Alternative scenario:
In case of breakdown of the level 1655.00 follow the recommendations below:
Time frame: D1
Recommendation: short position
Entry point: 1655.00
Take Profit 1: 1610.00
Take Profit 2: 1575.00
Comment:
RSI shows an upward trend in the medium term.
Key levels:
Resistance
Support
1835.00
1655.00
1790.00
1610.00
1745.00
1575.00
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