Gold Price Analysis: 50-HMA, immediate rising wedge probe XAU/USD bounce off $1,764
- Gold prices battle key resistance confluence around $1,785/86.
- Three-day-old falling trendline adds to the upside filters.
- Fresh selling will wait for a confirmation of the bearish chart pattern.
Gold picks up the bids near $1,785, up 0.50% intraday, while heading into Tuesday’s European session. The yellow metal dropped to the five-month low the previous day, before bouncing off $1,764.60.
While oversold RSI conditions favored the bullion buyers to portray gradual recovery moves, the underlying bearish pattern, rising wedge, keeps sellers hopeful. Additionally, failures to cross 50-HMA and short-term resistance line are some extra points favoring the gold bears.
However, the south-run needs confirmation from the downside break of rising wedge’s support, at $1,780.70 now, before eyeing the latest multi-month low near $1,764. It should also be noted that May 2018 peak surrounding $1,765 adds strength to the support ahead of highlighting the April 218 high of $1,747.82.
Meanwhile, an upside clearance of $1,786 resistance confluence needs to cross a falling trend line from November 26, currently near $1,798 before confirming the further recoveries.
During the quote’s sustained run-up past-$1,798, the $1,800 round-figure holds the key to further north-run towards September’s low around $1,849.
Gold hourly chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
