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

Gold is stuck in a sideways channel on the hourly chart.
Channel breakdown would open doors for deeper pullback to recent lows.

Omkar Godbole FXStreet Contributor

Gold is trading near the hourly chart sideways channel resistance of $1,954.

The consolidation seen on the hourly chart is preceded by a violation of the trendline rising from Aug. 12 and Aug. 16 lows. As such, the sideways channel is more likely to breached to the downside. That may encourage sellers to press toward support at $1,963 (Aug 12 low).

On the other hand, if the channel’s resistance is breached, the bearish view put forward by the ascending trendline breakdown confirmed earlier this week would be invalidated. That may lead bulls to reattempt testing the psychological hurdle of $2,000. That said, a stronger evidence of bullish revival would be a close above the lower high of $2,015 created on Aug. 18.

Hourly chart

Trend: Bearish

Technical levels

XAU/USD

Overview
Today last price	1951.42
Today Daily Change	4.62
Today Daily Change %	0.24
Today daily open	1946.8

Trends
Daily SMA20	1972.83
Daily SMA50	1859.41
Daily SMA100	1783.04
Daily SMA200	1664.46

Levels
Previous Daily High	1955.49
Previous Daily Low	1924.52
Previous Weekly High	2049.96
Previous Weekly Low	1863.24
Previous Monthly High	1984.8
Previous Monthly Low	1757.7
Daily Fibonacci 38.2%	1943.66
Daily Fibonacci 61.8%	1936.35
Daily Pivot Point S1	1929.05
Daily Pivot Point S2	1911.3
Daily Pivot Point S3	1898.08
Daily Pivot Point R1	1960.02
Daily Pivot Point R2	1973.24
Daily Pivot Point R3	1990.99

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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