Gold: 100-hour MA is capping recovery rally despite signs of weakness in USD
|- Gold's recovery rally has stalled despite the signs of weakness in the US dollar.
- The technical outlook would turn bullish above $1,300.
Gold is struggling to beat key hurdle despite the signs of bullish exhaustion in the dollar index - gold's biggest nemesis.
The downward sloping (bearish) 100-hour moving average (MA), currently at $1,285.66, is putting brakes on the recovery rally.
Moreover, the MA hurdle is holding strong even though the US dollar is feeling the pull of gravity. For instance, the AUD/USD has recovered from two-week lows reached earlier today. The USD/CNH pair fell from 6.8157 to 6.80 in the last few minutes.
Further, the EUR/USD pair is currently trading at 1.1365 - up 29 pips from the low of 1.1336 reached yesterday.
Notably, the dollar index, which tracks the value of the greenback against majors, has charted back-to-back doji candles on the daily chart. That candlestick pattern represents bullish exhaustion - the market has turned indecisive after an almost 150-pip rally.
Looking forward, the yellow metal could rise well above the 100-hour MA. The outlook, however, would turn bullish only above $1,300. Moreover, the bearish view put forward by Friday's range breakdown is still intact.
Gold Technical Levels
XAU/USD
Overview:
Today Last Price: 1285.13
Today Daily change: 0.63 pips
Today Daily change %: 0.05%
Today Daily Open: 1284.5
Trends:
Daily SMA20: 1284.95
Daily SMA50: 1255.59
Daily SMA100: 1234.62
Daily SMA200: 1228.59
Levels:
Previous Daily High: 1285.65
Previous Daily Low: 1277.5
Previous Weekly High: 1295.9
Previous Weekly Low: 1276.2
Previous Monthly High: 1284.7
Previous Monthly Low: 1221.39
Daily Fibonacci 38.2%: 1282.54
Daily Fibonacci 61.8%: 1280.61
Daily Pivot Point S1: 1279.45
Daily Pivot Point S2: 1274.4
Daily Pivot Point S3: 1271.3
Daily Pivot Point R1: 1287.6
Daily Pivot Point R2: 1290.7
Daily Pivot Point R3: 1295.75
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