Gold Price Analysis: XAU/USD struggles for direction, stuck in a range near $1900 mark


  • Gold now seems to have formed a symmetrical triangle on short-term charts.
  • Neutral technical indicators warrant caution before placing directional bets.

Gold extended its sideways consolidative price moves through the early North American session and remained confined in a narrow trading band, around the $1900 mark.

Looking at the technical picture, the XAU/USD has been oscillating between two converging trend-lines over the past one month or so. The range-bound trading action constitutes the formation of a symmetrical triangle on short-term charts.

The symmetrical triangle, though could be categorized as a bearish continuation, marks indecision over the precious metal's near-term trajectory. Moreover, neutral oscillators on 4-hourly/daily charts haven't been supportive of any firm near-term direction.

Hence, the direction of the next major move can only be determined after a valid breakout. This, in turn, warrants some caution for aggressive traders and points to an extension of the subdued trading action amid a combination of diverging forces.

A weaker tone surrounding the US dollar might continue to lend some support to the dollar-denominated commodity. However, indications of a strong opening in the US equity markets might undermine the safe-haven XAU/USD and any attempted positive move.

In the meantime, immediate resistance is pegged near the $1917-18 region, which if cleared decisively might be seen as a fresh trigger for bullish traders. Gold might then aim to surpass the $1932 intermediate hurdle and test the $1950-55 supply zone.

Conversely, a convincing break below the triangle support, currently near the $1895 region, now seems to accelerate the fall towards the $1874-72 horizontal support. Subsequent weakness has the potential to drag the XAU/USD back towards September monthly swing lows, around the $1850-48 region.

XAU/USD 4-hourly chart

fxsoriginal

Technical levels to watch

XAU/USD

Overview
Today last price 1905.52
Today Daily Change 1.34
Today Daily Change % 0.07
Today daily open 1904.18
 
Trends
Daily SMA20 1894.7
Daily SMA50 1924.87
Daily SMA100 1873.28
Daily SMA200 1754.74
 
Levels
Previous Daily High 1918.58
Previous Daily Low 1897.1
Previous Weekly High 1933.3
Previous Weekly Low 1882.46
Previous Monthly High 1992.42
Previous Monthly Low 1848.82
Daily Fibonacci 38.2% 1910.37
Daily Fibonacci 61.8% 1905.31
Daily Pivot Point S1 1894.66
Daily Pivot Point S2 1885.14
Daily Pivot Point S3 1873.18
Daily Pivot Point R1 1916.14
Daily Pivot Point R2 1928.1
Daily Pivot Point R3 1937.62

 

 

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