• Gold remained under some selling pressure for the third consecutive session on Wednesday and dropped to one-week lows, around the key $1400 psychological mark in the last hour.
  • The mentioned handle coincides with a key pivotal point - 200-period SMA on the 4-hourly chart, which if broken would set the stage for an extension of the ongoing downward trajectory.

Technical indicators on the mentioned chart have been gaining negative traction and support prospects for an eventual bearish breakdown. However, oscillators on the daily charts - although have been losing positive momentum, maintained their bullish bias and warrant some caution before placing any aggressive bets.

Meanwhile, a follow-through selling is likely to accelerate the fall further towards the $1390 region – marking near one-month-old ascending trend-line support. The said trend-line, along with another descending trend-line constitutes towards the formation of a symmetrical triangle on short-term charts

The symmetrical triangle is seen as a continuation pattern - bullish in this case and represents a brief pause before the next leg of a directional move. Hence, any dips towards the triangle support, around the $1390 region might still be seen as a buying opportunity and should help limit further downside.

On the flip side, the $1406-07 region now seems to act as an immediate resistance, above which the momentum could get extended towards $1415 supply zone. A follow-through up-tick might stall near the triangle resistance – around the $1421-22 region, which if cleared will set the stage for the resumption of the prior bullish trend.

Gold 4-hourly chart

fxsoriginal

XAU/USD

Overview
Today last price 1401.28
Today Daily Change -4.90
Today Daily Change % -0.35
Today daily open 1406.18
 
Trends
Daily SMA20 1405.48
Daily SMA50 1345.32
Daily SMA100 1319.39
Daily SMA200 1290.34
Levels
Previous Daily High 1418.3
Previous Daily Low 1401.4
Previous Weekly High 1427.05
Previous Weekly Low 1386.34
Previous Monthly High 1438.66
Previous Monthly Low 1306.18
Daily Fibonacci 38.2% 1407.85
Daily Fibonacci 61.8% 1411.84
Daily Pivot Point S1 1398.95
Daily Pivot Point S2 1391.73
Daily Pivot Point S3 1382.06
Daily Pivot Point R1 1415.85
Daily Pivot Point R2 1425.52
Daily Pivot Point R3 1432.74

 

 

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