Gold Technical Analysis: Bears await a convincing breakthrough descending triangle support

Haresh Menghani FXStreet

• The precious metal extended overnight rejection slide from one-week-old descending trend-line resistance and dropped to test an important horizontal support near $1220 level.

• A follow-through selling below the mentioned support will mark a near-term bearish breakthrough a descending triangular formation on the 1-hourly chart and add to the selling pressure.

• Technical indicators on hourly charts have started gaining negative momentum, and have also started losing traction on the daily chart, and thus, support prospects for an eventual breakdown.

Gold 1-hourly chart

XAU/USD

Overview:
    Today Last Price: 1220.87
    Today Daily change: -1.3e+2 pips
    Today Daily change %: -0.107%
    Today Daily Open: 1222.18
Trends:
    Previous Daily SMA20: 1218.96
    Previous Daily SMA50: 1218.56
    Previous Daily SMA100: 1207.46
    Previous Daily SMA200: 1236.43
Levels:
    Previous Daily High: 1228.04
    Previous Daily Low: 1221.4
    Previous Weekly High: 1230.3
    Previous Weekly Low: 1217.7
    Previous Monthly High: 1243.43
    Previous Monthly Low: 1182.54
    Previous Daily Fibonacci 38.2%: 1223.93
    Previous Daily Fibonacci 61.8%: 1225.5
    Previous Daily Pivot Point S1: 1219.71
    Previous Daily Pivot Point S2: 1217.24
    Previous Daily Pivot Point S3: 1213.07
    Previous Daily Pivot Point R1: 1226.34
    Previous Daily Pivot Point R2: 1230.51
    Previous Daily Pivot Point R3: 1232.98

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 flat lines below 1.1900; divergent Fed-ECB expectations offer support

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1835-1.1830 region and oscillates in a narrow band during the Asian session on Thursday. Spot prices currently trade around the 1.1875 area, remaining nearly unchanged for the day and staying within striking distance of an over one-week high, reached on Tuesday, amid mixed cues.

GBP/USD slips heading into the Thursday trading window

The Pound Sterling pulled back from four-year highs on Wednesday, weighed down by a combination of Bank of England dovishness and UK political uncertainty, even as the US Dollar weakened on soft labor market revisions.

Gold posts modest gains above $5,050 as US-Iran tensions persist despite strong labor data

Gold price trades in positive territory near $5,060 during the early Asian session on Thursday. The precious metal edges higher despite stronger-than-expected US employment data. The release of the US Consumer Price Index inflation report will take center stage later on Friday.

Bitcoin holds steady despite strong US labour market

Bitcoin briefly bounced from $66,000 to above $68,000 but slightly reversed those gains following Wednesday's US January jobs report. The top crypto is hovering around $67,000, down 2% over the past 24 hours as of writing on Wednesday.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

XRP sell-off deepens amid weak retail interest, risk-off sentiment

Ripple (XRP) is edging lower around $1.36 at the time of writing on Wednesday, weighed down by low retail interest and macroeconomic uncertainty, which is accelerating risk-off sentiment.