US Treasury yields are rising in ligh of hawkish comments from the Fed weakening the strength of gold.

Early in the American session, gold is trading around 1,805 with a bearish bias.

According to the daily chart, gold could find good support at the 200 EMA located at 1,801 or 3/8 Murray.

The metal is trading firmly lower due to the pressure exerted by the US dollar that received a boost from the comments of Jerome Powell. He said that there is room for an increase in the interest rate and reiterated that its QE program will end in March.

The eagle indicator has reached the oversold zone. This is a sign of an imminent technical rebound for gold in the next few hours.

Gold's trend on daily charts remains bullish as it is also above the 200 EMA and is trading within the uptrend channel formed since December 13.

A daily close below 1,796 could be the start of a move downward and a trend reversal with targets at 1,781 and up to 1,750.

Our trading plan is to buy if gold bounces off 1,801 or above 3/8 Murray at 1,896 with targets at 1,818 (21 SMA) and 1,828 (5/8).

Support and Resistance Levels for January 27 - 28, 2022

Resistance (3) 1,828

Resistance (2) 1,812

Resistance (1) 1,810

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Support (1) 1,796

Support (2) 1,787

Support (3) 1,781

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Scenario

Timeframe H4

Recommendation: buy above o buy if rebound

Entry Point 1,801; 1796

Take Profit 1,818; 1,828 (5/8)

Stop Loss 1,790

Murray Levels 1,843 (6/8) 1,828(5/8) 1,812 (4/8) 1,796 (3/8)

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