Gold Price Analysis: XAU/USD turns south once again, eyes $1670 ahead of NFP


  • XAU/USD consolidates the downside within a pennant on the 1H chart.
  • RSI has turned south while trending well below the midline.
  • US NFP holds the key as gold struggles below $1700.

Having hit nine-month lows at $1687 earlier this Friday, Gold (XAU/USD) bulls are struggling to extend the recovery above the $1700 level.

Gold prices have entered a phase of consolidation following a failure to find acceptance above the latter on a couple of occasions. Thus, XAU/USD carved out a pennant pattern on the hourly sticks.

Gold Price Chart: Four-hour 

An hourly closing below the rising trendline support at $1691 could validate a pennant breakdown, opening floors for a test of $1674/72 levels, which is the confluence of the pattern target and the June 2020 low.

The relative strength index (RSI) has turned south while trending within the bearish zone, suggesting that there is more scope to the downside.

Alternatively, a sustained move above the $1700 level, the convergence of the bearish 21-hourly moving average (HMA) and the pattern resistance, could revive the recovery momentum toward the 50-HMA at $1710.

Gold Additional levels

XAU/USD

Overview
Today last price 1693.22
Today Daily Change -4.26
Today Daily Change % -0.25
Today daily open 1697.48
 
Trends
Daily SMA20 1784.67
Daily SMA50 1832.77
Daily SMA100 1850.62
Daily SMA200 1860.27
 
Levels
Previous Daily High 1723.27
Previous Daily Low 1690.58
Previous Weekly High 1816.07
Previous Weekly Low 1717.24
Previous Monthly High 1871.9
Previous Monthly Low 1717.24
Daily Fibonacci 38.2% 1703.07
Daily Fibonacci 61.8% 1710.78
Daily Pivot Point S1 1684.28
Daily Pivot Point S2 1671.09
Daily Pivot Point S3 1651.59
Daily Pivot Point R1 1716.97
Daily Pivot Point R2 1736.47
Daily Pivot Point R3 1749.66

 

 

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