Gold Price Analysis: XAU/USD trades near rising channel support

Gold is flirting with the lower end of a 2.5-week long-ascending channel.
A breakdown would mean a continuation of the sell-of from mid-September highs.

Omkar Godbole FXStreet Contributor

Gold is trading near $1,895 at press time. That level is housing the lower end or support of the trendline connecting Sept 28 and Oct 7 lows and Oct 2 and Oct 12 highs.

The channel breakdown, if confirmed, would imply a resumption of the sell-off from the Sept 16 high of $1,973 and open the doors to the September low of $1,848.

The 14-day relative strength index is currently reporting bearish conditions with a below-50 print. As such, a downside break of the rising channel cannot be ruled out.

On the higher side, a close above the Oct 12 high of 1,933 is needed to invalidate the bearish lower highs setup on the daily chart and expose resistance at $2,000.

Daily chart

Trend: Bearish

Technical levels

XAU/USD

Overview
Today last price	1897.2
Today Daily Change	-4.56
Today Daily Change %	-0.24
Today daily open	1901.76

Trends
Daily SMA20	1899.36
Daily SMA50	1933.11
Daily SMA100	1868.03
Daily SMA200	1749.53

Levels
Previous Daily High	1912.97
Previous Daily Low	1882.46
Previous Weekly High	1930.62
Previous Weekly Low	1873.01
Previous Monthly High	1992.42
Previous Monthly Low	1848.82
Daily Fibonacci 38.2%	1901.32
Daily Fibonacci 61.8%	1894.11
Daily Pivot Point S1	1885.16
Daily Pivot Point S2	1868.55
Daily Pivot Point S3	1854.65
Daily Pivot Point R1	1915.67
Daily Pivot Point R2	1929.57
Daily Pivot Point R3	1946.18

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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