XAU/USD outlook: Gold price falls further as US-China trade deal fuels risk appetite
|XAU/USD
Gold price fell through key supports on Wednesday, deflated by growing optimism on US-China trade deal that cooled fears about deeper economic crisis and offset other factors that boost safe haven demand.
Fresh wave of risk appetite pushed gold through pivots at $3228 (50% retracement of $2956/$3500 upleg) which recently contained several attacks and $3200 (psychological/low of pullback from new record high).
Sustained break of $3200 to complete bearish failure swing pattern and generate signal of potential deeper pullback from $3500 peak.
Daily studies are weakening as 14-d momentum is heading deeper into negative territory and the price fell below 10/20/30 DMA’s which also formed bear-crosses.
However, oversold stochastic warns of possible increased headwinds that may result in hesitation at $3200 zone and keep near term price action in extended consolidation.
The price should stay under broken Fibo 50% ($3228) and extended upticks not to exceed daily highs of Tuesday / today ($3265/57 respectively) to keep bears intact.
Res: 3200; 3228; 3265; 3292.
Sup: 3164; 3126; 3100; 3084.
Interested in XAU/USD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.