Gold Technical Analysis: Bearish continuation pattern spotted on 4-hourly chart

Haresh Menghani FXStreet

• The precious metal, over the past one month or so, has been oscillating between two converging trend-lines, forming a symmetrical triangle/pennant on the 4-hourly chart.

• The contracting wedge might be categorized as a continuation pattern, marking a consolidation phase before the resumption of the prior/well-established downtrend.

• Technical indicators on daily/hourly charts are yet to pick up positive momentum and add credence to the bearish formation, suggesting selling bias at higher levels.

• However, it would be prudent to wait for a convincing break below the pattern support, currently near the $1192 region, before positioning for a fresh leg of downfall.

Gold 4-hourly chart

Spot Rate: $1202.18
Daily Low: $1197.12
Trend: Bearish

Resistance
R1: $1203.97 (R1 daily pivot-point)
R2: $1211.06 (last Friday's swing high)
R3: $1214.32 (August month swing high)

Support
S1: $1197.12 (current day swing low)
S2: $1193.87 (S1 daily pivot-point)
S3: $1187.75 (monthly low set on Sept. 11)

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.