Gold Price Analysis: XAU/USD risks further falls amid ascending triangle breakdown

Gold meets fresh supply amid the US dollar turnaround.
Ascending triangle breakdown spotted on the hourly chart.
Hourly RSI flirts with the oversold territory, eyes on Powell.

Dhwani Mehta FXStreet

Having faced rejection above $1950 on several occasions so far this Monday, Gold (XAU/USD) came under heavy selling pressure and fell nearly $10 in a matter of an hour.

The latest leg down in the yellow metal can be mainly attributed to a broad-based US dollar rebound, as the risk-aversion tightened its grip in Europe amid mounting coronavirus fears.

Markets also prefer to hold the US currency ahead of the Fed Chair Jerome Powell’s speech due later on Monday.

From a near-term technical perspective, the price broke below the rising trendline support at $1945.58 last hour, confirming an ascending triangle breakdown on the hourly sticks.

The metal faced stiff resistance once again at the horizontal 100-hourly Simple Moving Average (HMA) at $1954.

At the moment, the price trades below all the major HMAs and remains poised to test the pattern target at $1915. Ahead of that level, last Thursday’s low of $1932.88 will likely test the bears’ commitment.

The hourly Relative Strength Index (RSI), currently peeping into the oversold territory, suggests that there is more room to the downside.

On the flip side, recapturing the healthy resistance level around $1950 is critical to reviving the bulls. The 21, 50 and 200-HMAs are aligned around the confluence area.

However, the recovery will gain momentum only on a firm break above the 100-HMA.

Gold: Hourly chart

Gold: Additional levels

XAU/USD

Overview
Today last price	1937.70
Today Daily Change	-12.75
Today Daily Change %	-0.65
Today daily open	1950.55

Trends
Daily SMA20	1945.37
Daily SMA50	1935.06
Daily SMA100	1836.48
Daily SMA200	1714.71

Levels
Previous Daily High	1960.16
Previous Daily Low	1943.09
Previous Weekly High	1973.64
Previous Weekly Low	1932.88
Previous Monthly High	2075.32
Previous Monthly Low	1863.24
Daily Fibonacci 38.2%	1953.64
Daily Fibonacci 61.8%	1949.61
Daily Pivot Point S1	1942.37
Daily Pivot Point S2	1934.2
Daily Pivot Point S3	1925.3
Daily Pivot Point R1	1959.44
Daily Pivot Point R2	1968.34
Daily Pivot Point R3	1976.51

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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