Gold Price Analysis: XAU/USD bulls testing critical daily resistance
|- Gold has stalled in the decent within its bearish cycle.
- XAU/USD's short term momentum is with the bulls with prospects of a 50% mean reversion of the weekly bearish impulse.
Gold is testing the commitments of the bulls with a focus on the weekly 50% mean reversion confluence with old support.
The following is a top-down analysis that illustrates how bulls now need to get over the daily resistance from within 4-hour bullish conditions.
Monthly chart
The monthly chart has shown indecisiveness in the market so far for March, supported by the 21 SMA.
Weekly chart
Bulls have their eyes on a move back to test old support and a 50% mean reversion.
Daily chart
The daily chart shows the price is at a crossroad.
At resistance, there is the possibility of a return back to test the support and would leave the price trapped.
On a break of resistance, there are the prospects of a run back to test the 21-D SMA which would meet a 50% mean reversion of the weekly bearish impulse.
4-hour
The 4-hour momentum is with the bulls as the price chips away at the resistance zone and rides the support of the 21-SMA.
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.