Gold Technical Analysis: Bulls await a convincing break through 8-week old trading range

Haresh Menghani FXStreet

• The precious metal rallied hard to near three-week tops in a knee-jerk reaction to softer-than-expected US CPI figures, which dampened expectations for a faster pace of Fed rate hikes.

• The positive momentum once again stalled near an eight-week-old trading range resistance amid a modest USD recovery and goodish pickup in the US equity markets.

• Meanwhile, technical indicators on hourly/daily charts have started gaining positive momentum and thus, increase prospects for a near-term bullish breakout.

• However, it would be prudent to wait for a sustained move beyond the mentioned barrier before traders start positioning for any further near-term appreciating move.

Gold daily chart

XAU/USD

Overview:
    Last Price: 1209
    Daily change: 1.4e+3 pips
    Daily change: 1.21%
    Daily Open: 1194.57
Trends:
    Daily SMA20: 1196.79
    Daily SMA50: 1198.28
    Daily SMA100: 1210.71
    Daily SMA200: 1259.49
Levels:
    Daily High: 1195
    Daily Low: 1185.1
    Weekly High: 1208.6
    Weekly Low: 1184.3
    Monthly High: 1212.64
    Monthly Low: 1180.63
    Daily Fibonacci 38.2%: 1191.22
    Daily Fibonacci 61.8%: 1188.88
    Daily Pivot Point S1: 1188.11
    Daily Pivot Point S2: 1181.66
    Daily Pivot Point S3: 1178.21
    Daily Pivot Point R1: 1198.01
    Daily Pivot Point R2: 1201.46
    Daily Pivot Point R3: 1207.91

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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