- Gold is back in the red amid resurgent US dollar demand across the board.
- XAU/USD retests ascending 100-SMA on the 4H chart amid bearish RSI.
- Downside appears more compelling ahead of the US macro news.
Gold (XAU/USD) has returned to the red zone in the European session, having attempted a tepid bounce earlier in the Asian trading.
The US dollar resumes a recent uptrend and hits fresh two-week highs against its six major peers, despite the risk-on action in the European indices and positive US stock futures.
The uptick in the US Treasury yields also exerts additional downside pressure on the yieldless gold, as traders await fresh cues from the US ADP and ISM Services PMI reports for the next direction.
Gold: Technical outlook
Having faced rejection near $1784 earlier in the day, gold sellers fought back control and knocked off the rates below strong support at $1778.
At that level, the 21-simple moving average (SMA) coincides with the 50-SMA.
Gold Price Chart: Four-hour
Subsequently, the bears tested the 100-SMA support at $1773 once again. A four-hourly closing below the latter is likely to expose Tuesday’s low of $1770.
April 29 low at $1765 will be the next cap, cushioning the downside.
The Relative Strength Index (RSI) edges lower below the midline, allowing more room for losses.
Alternatively, the buyers need to recapture the $1778 support-turned-resistance, in order to revive the bullish momentum towards the $1800 mark.
Ahead of that crucial round figure, the previous week high of $1790 could test the bullish commitments.
Gold: Additional levels
|Today last price||1775.3|
|Today Daily Change||-3.70|
|Today Daily Change %||-0.21|
|Today daily open||1779|
|Previous Daily High||1799.08|
|Previous Daily Low||1770.9|
|Previous Weekly High||1790.03|
|Previous Weekly Low||1756.18|
|Previous Monthly High||1797.93|
|Previous Monthly Low||1705.84|
|Daily Fibonacci 38.2%||1781.66|
|Daily Fibonacci 61.8%||1788.32|
|Daily Pivot Point S1||1766.91|
|Daily Pivot Point S2||1754.81|
|Daily Pivot Point S3||1738.73|
|Daily Pivot Point R1||1795.09|
|Daily Pivot Point R2||1811.17|
|Daily Pivot Point R3||1823.27|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.