Gold technical analysis: Flatlined below 21-day EMA

Gold seesaws near $1,491.
21-day EMA limits immediate upside amid bearish MACD.

Anil Panchal FXStreet

Despite its sustained trading below 21-day EMA, gold prices stay modestly changed around $1,491 during the early Asian session on Monday.

The yellow metal clings to 38.2% Fibonacci retracement of July-September upside with the bearish signal from 12-bar Moving Average Convergence and Divergence (MACD) and extended trading under 21-day Exponential Moving Average (EMA) favoring sellers.

In doing so, a monthly trend line, at $1,483, acts as immediate key support ahead of 50% Fibonacci retracement level of $1,469.

It should, however, be noted that the quote’s further declines below $1,469 will be questioned by $1,455.50-$1,453 area including multiple lows since August 06 and 100-day EMA.

Meanwhile, a daily closing beyond a 21-day EMA level of $1,495.62 can trigger fresh run-up to six-week-old falling resistance line, at $1,509.

During the pair’s successful break above $1,509, late-September highs close to $1,535 will be the key to watch.

Gold daily chart

Trend: bearish

1. R3 1503.96
2. R2 1499.06
3. R1 1494.87
PP 1489.97
1. S1 1485.78
2. S2 1480.88
3. S3 1476.69

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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