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.

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


Today last price 1937.70
Today Daily Change -12.75
Today Daily Change % -0.65
Today daily open 1950.55
Daily SMA20 1945.37
Daily SMA50 1935.06
Daily SMA100 1836.48
Daily SMA200 1714.71
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


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