Gold Technical Analysis: Breaks below recent consolidative range, bears likely to aim at $1280 level

Haresh Menghani FXStreet

• Having repeatedly failed to make it through the $1295 supply zone, renewed US-China trade optimism prompted some fresh selling and dragged the precious metal to over one-week lows.

• A sustained weakness below 200-hour SMA was seen as a key trigger for intraday bearish traders, with the commodity finally breaking through over one-week-old trading range.

• Technical indicators on the 1-hourly chart have moved on the verge of breaking into oversold territory and seemed to be the only factor holding traders from placing aggressive bets.

• However, given the bearish breakdown, negative oscillators on the 4-hourly chart support prospect for an extension of the ongoing downfall back towards testing $1280 level.

• Meanwhile, bullish indicators on the daily chart suggest some dip-buying interest at lower levels and should help any subsequent downfall amid dovish Fed expectations.

Gold 1-hourly chart

XAU/USD

Overview:
    Today Last Price: 1285.77
    Today Daily change: -612 pips
    Today Daily change %: -0.474%
    Today Daily Open: 1291.89
Trends:
    Daily SMA20: 1282.63
    Daily SMA50: 1251.02
    Daily SMA100: 1232.26
    Daily SMA200: 1228.87
Levels:
    Previous Daily High: 1295.45
    Previous Daily Low: 1288.95
    Previous Weekly High: 1297.15
    Previous Weekly Low: 1279.35
    Previous Monthly High: 1284.7
    Previous Monthly Low: 1221.39
    Daily Fibonacci 38.2%: 1291.43
    Daily Fibonacci 61.8%: 1292.97
    Daily Pivot Point S1: 1288.74
    Daily Pivot Point S2: 1285.6
    Daily Pivot Point S3: 1282.24
    Daily Pivot Point R1: 1295.24
    Daily Pivot Point R2: 1298.6
    Daily Pivot Point R3: 1301.74

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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