Gold Price Analysis: XAU/USD remains confined in a range, bearish bias persists


  • Gold lacked any firm directional bias and was seen oscillating in a range around $1865 region.
  • This week’s sustained breakthrough an upward sloping trend-channel favours bearish traders.
  • Attempted recovery might be seen as a selling opportunity and remain capped near $1900 mark.

Gold extended its sideways consolidative price action through the mid-European session and remained confined in a narrow trading band, around the $1865 region.

The precious metal's inability to gain any meaningful traction comes on the back of this week's break below a short-term ascending trend-channel, which constituted the formation of a bearish flag pattern. Meanwhile, technical indicators on the daily chart maintained their bearish bias and are still far from being in the oversold territory, adding credence to the negative set-up.

That said, bearish traders might still wait for some follow-through selling below the $1850-48 strong horizontal support before positioning for any further depreciating move. The XAU/USD might then accelerate the slide towards testing the $1820-15 congestion zone before eventually dropping to test the very important 200-day SMA support – levels just below the $1800 round-figure.

On the flip side, the mentioned trend-channel support breakpoint, around the $1877-78 region, which now coincides with 200-hour SMA, should now act as a stiff resistance. Any subsequent move up might be seen as an opportunity to initiate fresh bearish positions and runs the risk of fizzling out rather quickly. This, in turn, should cap the upside for the XAU/USD near the $1900 mark.

XAU/USD 1-hourly chart

fxsoriginal

Technical levels to watch

XAU/USD

Overview
Today last price 1866.68
Today Daily Change -0.06
Today Daily Change % -0.00
Today daily open 1866.74
 
Trends
Daily SMA20 1890.76
Daily SMA50 1901.22
Daily SMA100 1908.78
Daily SMA200 1792.47
 
Levels
Previous Daily High 1874.12
Previous Daily Low 1852.8
Previous Weekly High 1965.58
Previous Weekly Low 1850.56
Previous Monthly High 1933.3
Previous Monthly Low 1860
Daily Fibonacci 38.2% 1860.94
Daily Fibonacci 61.8% 1865.98
Daily Pivot Point S1 1854.99
Daily Pivot Point S2 1843.23
Daily Pivot Point S3 1833.67
Daily Pivot Point R1 1876.31
Daily Pivot Point R2 1885.87
Daily Pivot Point R3 1897.63

 

 

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