Gold Outlook: Reversal pattern is forming on daily chart but 20SMA limits recovery

Slobodan Drvenica Windsor Brokers

GOLD

Spot gold regained traction and bounced from Asian low at $1277, as renewed risk-off mode on IMF downgrade of global growth forecast increased safe-haven demand. Fresh gains struggle to return above rising 20SMA ($1284), close above which is needed to complete Doji reversal pattern on daily chart and shift near-term focus towards $1287 (10SMA) and $1292 (Friday's high). Flat momentum and slow stochastic on daily chart obstruct recovery for now and the downside would remain vulnerable on today's repeated close below 20SMA. This would keep pivotal supports at $1276/73 (Monday's low / Fibo 38.2% of $1232/$1298 upleg) exposed, with stronger bearish signal to be expected on break here.

Res: 1284; 1287; 1292; 1295
Sup: 1281; 1276; 1273; 1265

Interested in Gold technicals? Check out the key levels

1. R3 1288.85
2. R2 1286.24
3. R1 1281.12
PP 1278.51
1. S1 1273.39
2. S2 1270.78
3. S3 1265.66

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD holds steady above 1.1850 in quiet session

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day holiday.

GBP/USD flat lines near 1.3650 ahead of UK and US data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.3650 on Monday. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important data releases from the UK and the US.

Gold corrects lower, tries to stabilize above $5,000

Gold started the week under bearish pressure and declined to the $4,960 area before staging a modest rebound. As trading volumes remain thin with the US financial markets remaining closed on Presidents' Day holiday, XAU/USD looks to stabilize above $5,000 ahead of this week's key data releases.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Monero Price Forecast: XMR risks a drop below $300 under mounting bearish pressure

Monero (XMR) starts the week under pressure, recording a 4% decline at press time on Monday after a 7% drop the previous day, putting the $300 support zone in focus.