Gold Price Analysis: XAU/USD nears falling wedge hurdle

Gold trades near $1,841 versus $1,829 in early Asia.
A potential falling wedge breakout would imply bullish reversal.

Omkar Godbole FXStreet Contributor

Gold trades 0.6% higher on the day near $1,841 at press time.

The 4-hour chart shows a falling wedge pattern – converging trendlines connecting lower highs and lower lows. The converging nature of trendlines indicates the weakening of the bearish momentum. As such, a breakout is considered bullish.

The wedge hurdle is currently seen at $1,844. Acceptance above that level would confirm an end of the pullback from the Jan. 6 high of $1,959 and reversal higher. The immediate resistance is located at $1,875 – the lower high created on Jan. 29.

On the downside, $1,820 is critical support followed by the recent low of $1,785.

4-hour chart

Trend: Bullish

Technical levels

XAU/USD

Overview
Today last price	1840.42
Today Daily Change	10.55
Today Daily Change %	0.58
Today daily open	1829.87

Trends
Daily SMA20	1842.17
Daily SMA50	1859.16
Daily SMA100	1870.99
Daily SMA200	1854.78

Levels
Previous Daily High	1839.22
Previous Daily Low	1807.86
Previous Weekly High	1871.9
Previous Weekly Low	1785.02
Previous Monthly High	1959.42
Previous Monthly Low	1802.8
Daily Fibonacci 38.2%	1827.24
Daily Fibonacci 61.8%	1819.84
Daily Pivot Point S1	1812.08
Daily Pivot Point S2	1794.29
Daily Pivot Point S3	1780.72
Daily Pivot Point R1	1843.44
Daily Pivot Point R2	1857.01
Daily Pivot Point R3	1874.8

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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