XAU/USD outlook: Gold ticks higher on Brexit / trade uncertainty but techs still point lower

Slobodan Drvenica Windsor Brokers

GOLD

Spot gold edged higher in European trading on fresh uncertainty over Brexit talks and negative tones from US/China trade talks.
The yellow metal hit session high at $1485 on bounce from Tuesday’s two-week low at $1477, posted after daily drop of 1.2%.
Studies on daily chart remain bearishly aligned as momentum remains in the negative territory, stochastic heads south, MA’s and Tenkan/Kijun-sen are in bearish setup and negative signal was generated on Tuesday’s close below pivotal Fibo support at $1482 (61.8% of $1459/$1519).
Current action is so far seen as consolidation ahead of fresh weakness, with repeated close below $1482 to confirm bearish signal.
Sustained break below $1482 pivot would open way towards next strong support at $1470 (daily cloud base) and risk attack at $1459 (1 Oct spike low).
On the other side, stronger upticks, mainly driven by fundamentals, cannot be ruled out, with initial barrier at $1487 (5DMA) and key resistances at $1500 zone (cluster of daily MA’s), break of which is needed to neutralize bears.

Res: 1487; 1489; 1495; 1500
Sup: 1477; 1473; 1470; 1464

Interested in XAU/USD technicals? Check out the key levels

1. R3 1514.24
2. R2 1506.09
3. R1 1493.58
PP 1485.43
1. S1 1472.92
2. S2 1464.77
3. S3 1452.26

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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