Gold Technical Analysis: Forms a strong base near 200-hour SMA

Gold remains confined in a narrow trading band around $1550 region.
Dismal headline NFP-led uptick turns out to be rather short-lived.
The technical set-up warrants some caution for aggressive traders.

Haresh Menghani FXStreet

Gold edged higher in reaction to dismal US NFP print, albeit lacked any strong follow-through buying and remained well within the previous session's trading range.

The precious metal has been oscillating in a narrow band over the past 24-hours or so and trying to form a strong base near 200-hour SMA, around the $1550 region.

This is closely followed by support marked by 50% Fibonacci level of the $1470-$1611 positive move, which if broken might seen as a key trigger for bearish traders.

Below the mentioned support, the commodity is likely to accelerate the slide further towards testing its next major support near 61.8% Fibo., around the $1427-26 region.

Oscillators on hourly charts have again started drifting in the negative territory but maintained their bullish bias on the daily chart, warranting some caution for aggressive traders.

Hence, it will be prudent to wait for some strong follow-through selling before confirming that the commodity has already topped out and positioning for any further decline.

On the upside, immediate resistance is pegged near the $1560 region (38.2% Fibo. level), above which the momentum could get extended towards the $1572 horizontal resistance.

Gold 1-hourly chart

XAU/USD

Overview
Today last price	1548.22
Today Daily Change	-2.55
Today Daily Change %	-0.16
Today daily open	1550.77

Trends
Daily SMA20	1512.02
Daily SMA50	1486.82
Daily SMA100	1495.76
Daily SMA200	1429.66

Levels
Previous Daily High	1561.38
Previous Daily Low	1540.3
Previous Weekly High	1553.4
Previous Weekly Low	1510.85
Previous Monthly High	1525.1
Previous Monthly Low	1454.05
Daily Fibonacci 38.2%	1548.35
Daily Fibonacci 61.8%	1553.32
Daily Pivot Point S1	1540.25
Daily Pivot Point S2	1529.74
Daily Pivot Point S3	1519.18
Daily Pivot Point R1	1561.33
Daily Pivot Point R2	1571.89
Daily Pivot Point R3	1582.4

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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