- 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.
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.
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
|Today last price||1937.70|
|Today Daily Change||-12.75|
|Today Daily Change %||-0.65|
|Today daily open||1950.55|
|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|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.