Spot Gold – Bearish near-term bias keeps risk of further easing

Slobodan Drvenica Windsor Brokers

GOLD

Gold price holds in red on Friday as dollar firms and extends pullback after strong double upside rejection at $1355 zone on Wed/Thu. Fresh extension lower on Friday broke below 10SMA ($1343 also near 50% of $1319/$1365 upleg) and cracked next support at $1339 (rising 20SMA). Initial bullish sentiment is fading as safe haven demand eases and daily techs are weakening and building bearish momentum which could help for further extension lower. Break below pivotal supports at $1339/37 (20SMA/Fibo 61.8% of $1319/$1365) would further weaken the structure and generate stronger bearish signal for extension towards daily cloud, spanned between $1334 and $1328. Thick hourly cloud ($1346/50) marks solid barrier which is expected to keep the upside attempts limited.

Res: 1343; 1346; 1350; 1354
Sup: 1339; 1337; 1334; 1328

Interested in XAUUSD technicals? Check out the key levels

1. R3 1367.6
2. R2 1361.2
3. R1 1353.3
PP 1346.9
1. S1 1339
2. S2 1332.6
3. S3 1324.7

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.

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