Gold Price Analysis: Some daily & weekly chart technical signals point to a retracement

There is a divergence on the weekly chart that could point to a move lower.
The price is still in an uptrend but there are some suggestions it is overextended.

Rajan Dhall, MSTA FX Daily

Weekly chart

The weekly chart is showing a massive three-wave divergence on the Relative Strength Index indicator (RSI). This is sometimes a sign that the price might be starting to pull back from its mammoth uptrend in recent times.

The USD 1800.00 level did look like the target in this bull run but there could always be a small retracement on the way to the major level. in the other weekly chart below this one, I have colour coded the support levels from the last consolidation at the highs. USD 1676.78 is the next major support on the downside. This purple line is the mean value area from the last consolidation and it had been used on a few good occasions to provide both support and resistance.

Looking closer at the zone, the orange level at USD 1534.00 is the main consolidation low. It would be quite a deep retracement if the price came that low but stranger things have happened. If there is a firm break below there then the market could be looking at a change in the underlying trend. For now the trend is still up and this is just a small blip.

Daily Chart

Not only does the daily chart confirm the divergence the 38.2% and the 23.6% support zones confluence perfectly with Fibonacci zones. Keep a close eye on these levels as they look strong and match with the weekly support and resistance zones.

The RSI is also showing a gradual trend lower and upside breaks of trendlines can also be an important signal that the trend could be continuing. Overall this is clearly still a bull market. The point now would be working out if it does retrace, how much? and where is the next entry point?.

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.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.