Gold Price Analysis: XAU/USD trades below the 200-day SMA

Gold sellers look to establish a foothold below the 200-day SMA.
That may invite stronger selling pressure, leading to a deeper decline toward November lows.

Omkar Godbole FXStreet Contributor

Gold is currently trading below the 200-day Simple Moving Average (SMA) at $1,848, having closed below the long-term technical line on Wednesday.

It remains to be seen if the latest break below the widely-tracked average is sustained. The SMA was breached in late November and couple of times earlier this month. However, sellers failed to establish a foothold under the average support then.

Should sellers succeed this time, more bears may join the market, yielding a deeper decline. Major support is seen at $1,764 (November low).

A close above the lower high of $1,875 created on Jan. 21 would confirm a reversal higher and expose resistance at $1,959 (Jan. 6 high).

Daily chart

Trend: Bearish

Technical levels

XAU/USD

Overview
Today last price	1837.04
Today Daily Change	-3.76
Today Daily Change %	-0.20
Today daily open	1840.8

Trends
Daily SMA20	1870.71
Daily SMA50	1857.49
Daily SMA100	1880.14
Daily SMA200	1849.97

Levels
Previous Daily High	1853.2
Previous Daily Low	1831.36
Previous Weekly High	1875.2
Previous Weekly Low	1802.8
Previous Monthly High	1906.87
Previous Monthly Low	1775.52
Daily Fibonacci 38.2%	1839.7
Daily Fibonacci 61.8%	1844.86
Daily Pivot Point S1	1830.37
Daily Pivot Point S2	1819.95
Daily Pivot Point S3	1808.53
Daily Pivot Point R1	1852.21
Daily Pivot Point R2	1863.63
Daily Pivot Point R3	1874.05

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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