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 stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

LayerZero Price Forecast: ZRO steadies as markets digest Zero blockchain announcement

LayerZero (ZRO) trades above $2.00 at press time on Thursday, holding steady after a 17% rebound the previous day, which aligned with the public announcement of the Zero blockchain and Cathie Wood joining the advisory board.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.