Gold Price Analysis: 1-hour chart highlights a strong technical rejection point at $1727.37
- Gold is trading 0.73% higher on Thursday as the USD weakens.
- The current retracement might have come to an end close to these current levels.
Gold 1-hour chart
Gold has been moving higher in the session as the retracement continues. The trend on the hourly chart below is still firmly down. This current wave higher could be the next lower high and there could be some signs of a rejection point at the moment.
Looking at the 1-hour chart the blue trendline looks like it has been rejected again. Adding to this the price level also confluences at the 50% Fibonacci retracement level. Lastly, the wave low resistance from 19th May at USD 172596 per try ounce is also at the same zone marked by the red rectangle.
The Relative Strength Index indicator is also in an oversold area. This also indicates there could be a move lower as the price looks to be overextended. The MACD histogram is above the zero line but the signal lines might just be starting to have a bearish cross over. Overall on the higher timeframes, this is still an uptrend but maybe the short term correction is not over.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
