Slobodan Drvenica
Windsor Brokers
Gold accelerates lower on Monday, after hitting new five-month high, deflated by stronger dollar and despite the news that China, big gold consumer, is relaxing its strict Covid measures.
The metal lost traction after a marginal close above psychological $1800 barrier and a marginal weekly close above the nearby 200DMA ($1795).
Fresh weakness points to a false break above 200DMA / $1800 and formation of reversal pattern on daily chart, after last Friday’s Hanging Man pattern warned that bulls face strong headwinds and may run out of steam.
Technical studies are weakening on daily chart, as falling 14-d momentum is entering negative territory, stochastic is reversing from overbought zone and RSI is heading south and broke below its 7-d moving average.
Fresh bears eye initial supports at $1768 (bull-trendline), $1764 (Fibo 23.6% of $1616/$1810 / 10DMA) and $1757 (20DMA), violation of which would risk deeper pullback and expose key supports at $1736 (Fibo 38.2%) and $1723 (Nov 23 trough).
Res: 1795; 1800; 1810; 1814
Sup: 1768; 1764; 1757; 1736
-638058557056139384.png)
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD hovers around 1.0700 after German IFO data
EUR/USD stays in a consolidation phase at around 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price trades with mild negative bias, manages to hold above $2,300 ahead of US data
Gold price (XAU/USD) edges lower during the early European session on Wednesday, albeit manages to hold its neck above the $2,300 mark and over a two-week low touched the previous day.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.