Gold Price Analysis: XAU/USD rejected above $1,950 despite bullish candlestick pattern

Gold fails to chew through offers around $1,950.
The daily chart shows a bullish Doji reversal pattern.

Omkar Godbole FXStreet Contributor

Gold is trading near $1,945 at press time, representing a 0.10% decline on the day.

The yellow metal closed Wednesday with 0.8% gains, marking a positive follow-through to Tuesday's Doji candle. In other words, the daily chart now shows a bullish Doji reversal pattern.

So far, however, that has failed to invite stong chart-driven selling. Gold faced rejection at $1,950 an hour ago and is currently trading in the red.

Key support levels are located at $1,916 (50-day SMA) and $$1,906 (Tuesday's low). Meanwhile, resistance levels are seen at $1,950 (session high) and $1,978 (trendline falling from Aug. 18 and Sept. 1 highs).

The bullish Doji reversal pattern would remain valid while prices are held above $1,906.

Daily chart

Trend: Bullish

Technical levels

XAU/USD

Overview
Today last price	1944.68
Today Daily Change	-1.85
Today Daily Change %	-0.10
Today daily open	1946.53

Trends
Daily SMA20	1948.01
Daily SMA50	1912.93
Daily SMA100	1819.8
Daily SMA200	1697.87

Levels
Previous Daily High	1950.9
Previous Daily Low	1920.16
Previous Weekly High	1992.42
Previous Weekly Low	1916.42
Previous Monthly High	2075.32
Previous Monthly Low	1863.24
Daily Fibonacci 38.2%	1939.16
Daily Fibonacci 61.8%	1931.9
Daily Pivot Point S1	1927.49
Daily Pivot Point S2	1908.46
Daily Pivot Point S3	1896.75
Daily Pivot Point R1	1958.23
Daily Pivot Point R2	1969.94
Daily Pivot Point R3	1988.97

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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