XAU/USD outlook: Gold price falls further as US-China trade deal fuels risk appetite
XAU/USD
Gold price fell through key supports on Wednesday, deflated by growing optimism on US-China trade deal that cooled fears about deeper economic crisis and offset other factors that boost safe haven demand.
Fresh wave of risk appetite pushed gold through pivots at $3228 (50% retracement of $2956/$3500 upleg) which recently contained several attacks and $3200 (psychological/low of pullback from new record high).
Sustained break of $3200 to complete bearish failure swing pattern and generate signal of potential deeper pullback from $3500 peak.
Daily studies are weakening as 14-d momentum is heading deeper into negative territory and the price fell below 10/20/30 DMA’s which also formed bear-crosses.
However, oversold stochastic warns of possible increased headwinds that may result in hesitation at $3200 zone and keep near term price action in extended consolidation.
The price should stay under broken Fibo 50% ($3228) and extended upticks not to exceed daily highs of Tuesday / today ($3265/57 respectively) to keep bears intact.
Res: 3200; 3228; 3265; 3292.
Sup: 3164; 3126; 3100; 3084.
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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.
