Gold Price Analysis: XAU/USD charts a narrowing price range near the 200-day SMA

Gold defends the widely-tracked 200-day SMA support.
The hourly chart shows a narrowing price range or pennant pattern.

Omkar Godbole FXStreet Contributor

Gold is trading largely unchanged on the day near $1,845 per ounce. The sellers failed to establish a foothold below the 200-day Simple Moving Average (SMA) for the second straight trading day on Monday. The average is currently located at $1,838.

The yellow metal has carved out a pennant pattern on the hourly chart. A downside break would imply a continuation of the sell-off from $1,940 and open the doors to a re-test of Monday's low of $1,816. A violation there would expose the psychological level of $1,800.

On the other hand, a triangle breakout would validate the seller fatigue signaled by the long tail attached to Monday's daily candle and allow a bounce to the former support-turned-resistance near $1,870.

Hourly chart

Trend: Neutral

Technical levels

XAU/USD

Overview
Today last price	1845.04
Today Daily Change	-0.22
Today Daily Change %	-0.01
Today daily open	1845.26

Trends
Daily SMA20	1885.83
Daily SMA50	1867.93
Daily SMA100	1891.46
Daily SMA200	1840.44

Levels
Previous Daily High	1856.82
Previous Daily Low	1816.96
Previous Weekly High	1959.42
Previous Weekly Low	1828.27
Previous Monthly High	1906.87
Previous Monthly Low	1775.52
Daily Fibonacci 38.2%	1832.19
Daily Fibonacci 61.8%	1841.59
Daily Pivot Point S1	1822.54
Daily Pivot Point S2	1799.82
Daily Pivot Point S3	1782.68
Daily Pivot Point R1	1862.4
Daily Pivot Point R2	1879.54
Daily Pivot Point R3	1902.26

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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