Gold Price Analysis: XAU/USD rebounds from Fibo support, stays below $1,900


  • Gold is staging a rebound following Monday's slump.
  • XAU/USD stays below a cluster of moving averages. 
  • A daily close below $1,850 could cause the outlook to turn bearish.

After climbing to its highest level since mid-September at $1,965 on Monday, the XAU/USD pair made a sharp U-turn and suffered its largest daily percentage decline since early August. The pair closed at $1,861 and lost 4.58% but started to erase its losses on Tuesday. As of writing, XAU/USD was up 1.2% on the day at $1,884.

Gold technical outlook

Despite Tuesday's rebound, XAU/USD continues to trade below the 20-day, 50-day and 100-day SMAs, which are currently located around $1,900 psychological level. Additionally, the Fibonacci 50% retracement of the June-August uptrend is reinforcing this resistance area. Meanwhile, the Relative Strength Index (RSI) indicator on the daily chart stays below 50, suggesting that the pair is making a technical correction. Only a decisive break above $1,900 could attract more buyers and help XAU/USD shake off the bearish pressure.

On the other hand, the Fibonacci 61.8% retracement of the same trend seems to have formed important support at $1,850. If price makes a daily close below $1,850, it could extend its slide toward $1,815 (former resistance).

Gold daily chart

Additional levels to watch for

XAU/USD

Overview
Today last price 1883.46
Today Daily Change 17.82
Today Daily Change % 0.96
Today daily open 1865.64
 
Trends
Daily SMA20 1902.5
Daily SMA50 1911.69
Daily SMA100 1900.34
Daily SMA200 1780.11
 
Levels
Previous Daily High 1965.58
Previous Daily Low 1850.56
Previous Weekly High 1960.4
Previous Weekly Low 1873.52
Previous Monthly High 1933.3
Previous Monthly Low 1860
Daily Fibonacci 38.2% 1894.5
Daily Fibonacci 61.8% 1921.64
Daily Pivot Point S1 1822.27
Daily Pivot Point S2 1778.91
Daily Pivot Point S3 1707.25
Daily Pivot Point R1 1937.29
Daily Pivot Point R2 2008.95
Daily Pivot Point R3 2052.31

 

 

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