Gold Price Analysis: XAU/USD teasing rising channel breakdown on 1H chart
|- Gold looks vulnerable despite Wednesday bounce.
- XAU/USD teasing a rising channel breakdown on the hourly chart.
- 200-DMA at $1798 is the level to beat for the bears.
The recovery in Gold (XAU/USD) faltered at the rising channel hurdle near $1818 and since then the prices turned south, in a bid to test the four-month lows of $1800 reached Monday.
The bears are fighting back control, as gold looks poised to dive out of the rising channel pattern formed on the hourly chart.
An hourly close below the rising trendline support at $1804 could validate the bearish formation, opening floors towards the multi-month lows.
A breach of the last could expose the critical 200-daily moving average (DMA), now located at $1798.
The next on the sellers’ radars will be the May 18 high of $1765.
Alternatively, the horizontal 21-hourly moving average (HMA) at $1809 could challenge any recovery attempt.
Acceptance above the latter could call for a test of the bearish 50-HMA at $1814.
The channel resistance will once again come into the picture on a firm break above the 50-HMA barrier.
However, the downside appears more compelling, with the hourly Relative Strength Index (RSI) turning south while within the bearish region below 50.00.
Gold Price Chart: Hourly
Gold: Additional levels
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