Gold Price Analysis: Edges lower to test 100-hour SMA support, around $1765 area


  • Gold remains confined in a range for the second consecutive session on Tuesday.
  • The technical set-up supports prospects for the emergence of some dip-buying.
  • A convincing break below $1767-65 confluence support might negate bullish bias.

Gold extended its subdued/range-bound trading action for the second straight session on Tuesday, forming a rectangle on short-term charts.

A rectangle is usually considered as a continuation pattern that marks a brief pause in the trend (bullish in this case), though sometimes might point to significant tops. Nevertheless, the pattern is not complete until a breakout has occurred.

Meanwhile, technical indicators on the 1-hourly chart have just started drifting into the bearish territory. However, oscillators on 4-hourly/daily charts maintained their bullish bias and support prospects for the emergence of some dip-buying.

The precious metal seems all set to build on its recent appreciating move and aim back to retest multi-year tops, around the $1779-80 region set last Wednesday. The momentum could further get extended towards the ambitious $1800/ounce target.

That said, a convincing break below the rectangle support, around the $1767-65 region, which coincides with 100-hour SMA could prompt some long-unwinding trade. The commodity might then accelerate the slide back towards 200-hour SMA, around the $1755 region.

Gold 1-hourly chart

fxsoriginal

Technical levels to watch

XAU/USD

Overview
Today last price 1769.15
Today Daily Change -3.41
Today Daily Change % -0.19
Today daily open 1772.56
 
Trends
Daily SMA20 1733.7
Daily SMA50 1723.64
Daily SMA100 1670
Daily SMA200 1588.06
 
Levels
Previous Daily High 1776.13
Previous Daily Low 1765.8
Previous Weekly High 1779.41
Previous Weekly Low 1742.97
Previous Monthly High 1765.38
Previous Monthly Low 1670.72
Daily Fibonacci 38.2% 1772.18
Daily Fibonacci 61.8% 1769.75
Daily Pivot Point S1 1766.86
Daily Pivot Point S2 1761.17
Daily Pivot Point S3 1756.53
Daily Pivot Point R1 1777.19
Daily Pivot Point R2 1781.83
Daily Pivot Point R3 1787.52

 

 

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