Gold Technical Analysis: Bearish pressure remains unabated ahead of US retail sales

Haresh Menghani FXStreet

• The precious metal has been trending lower since the New-York trading session on Tuesday alongside a downward sloping trend-channel on the 30-min chart.

• The recent USD upsurge remained uninterrupted and was seen as one of the key factors exerting some heavy downward pressure on the dollar-denominated commodity.

• The commodity's inability to attract any buying interest clearly suggests that the near-term bearish trajectory might still be far from being over.

• However, highly oversold conditions on hourly/daily/weekly charts might turn out to be the only factor, which might help ease the prevailing bearish pressure.

Gold 30-min chart

Spot Rate: $1185
Daily High: $1195
Trend: Bearish with prospects of a near-term bounce

Resistance
R1: $1188 (horizontal zone)
R2: $1195 (current day swing high)
R3: $1200 (psychological round figure mark)

Support
S1: $1181 (Jan. 27, 2017 swing low)
S2: $1177 (Jan. 11, 2017 swing low)
S3: $1172 (horizontal zone)

Author

Haresh Menghani

FXStreet

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

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