- Gold witnessed some heavy selling on Thursday and dived to near three-week lows.
- The technical set-up supports prospects for an eventual break below the $1800 mark.
- Attempted recovery move might now confront stiff resistance near the $1848-50 area.
Gold maintained its offered tone through the first half of the European session and was last seen trading around the $1815 region, just above near three-week lows set earlier this Thursday.
Given this week's breakthrough a short-term ascending trend-line, a subsequent weakness below the $1830 horizontal levels supports prospects for a further near-term depreciating move. Hence, a fall back towards challenging 2021 lows, around the $1800 mark touched on January 18, looks a distinct possibility.
Meanwhile, technical indicators on the daily chart have been gaining negative momentum and are still far from being in the oversold territory. Hence, some follow-through selling below the mentioned level might be seen as a fresh trigger for bearish traders and pave the way for an extension of the downward trajectory.
The next relevant target on the downside is pegged near the $1787-86 area before the XAU/USD eventually slide to test November 2020 swing lows, around the $1765-64 region.
On the flip side, the $1830 level now becomes immediate resistance. Any further recovery might be seen as a selling opportunity and remain capped near the ascending trend-line support breakpoint, around the $1848-50 region. The latter coincides with the very important 200-day SMA and should now act a key pivotal point for short-term traders.
XAU/USD 4-hourly chart
Technical levels to watch
|Today last price||1815.89|
|Today Daily Change||-17.11|
|Today Daily Change %||-0.93|
|Today daily open||1833|
|Previous Daily High||1845.02|
|Previous Daily Low||1829.68|
|Previous Weekly High||1875.7|
|Previous Weekly Low||1831.36|
|Previous Monthly High||1959.42|
|Previous Monthly Low||1802.8|
|Daily Fibonacci 38.2%||1835.54|
|Daily Fibonacci 61.8%||1839.16|
|Daily Pivot Point S1||1826.78|
|Daily Pivot Point S2||1820.56|
|Daily Pivot Point S3||1811.44|
|Daily Pivot Point R1||1842.12|
|Daily Pivot Point R2||1851.24|
|Daily Pivot Point R3||1857.46|
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