Gold technical analysis: Range play intact amid trade optimism

Gold remains trapped in a sideways channel for a fifth straight week.
The hourly chart shows scope for a re-test of $1,500.

Omkar Godbole FXStreet Contributor

Gold is currently trading at $1,506 per Oz, representing a 0.17% gain on the day, having faced rejection at highs near $1,515 on Monday.

Prices remain trapped in $1,520-$1,475 range for the fifth straight week. The US and China are closing on the phase-one of a trade deal and forcing a breakout is going to be a tough task for the yellow metal bulls.

Currently, the hourly chart relative strength index is reporting bearish conditions with a below-50 print and the MACD histogram is producing deeper bars below the zero line, signaling strengthening bearish momentum.

Gold, therefore, risks extending losses to the hourly chart support at $1,503 in the next few hours. A violation there would expose the psychological support of $1,500 (200-hour MA).

The outlook as per the hourly chart would turn bullish if prices invalidate the lower highs setup with a move above $1,510.

Daily chart

Trend: Neutral-to-bearish

Technical levels

XAU/USD

Overview
Today last price	1506.46
Today Daily Change	-2.12
Today Daily Change %	-0.14
Today daily open	1508.58

Trends
Daily SMA20	1496.23
Daily SMA50	1504.07
Daily SMA100	1472.77
Daily SMA200	1387.23

Levels
Previous Daily High	1514.85
Previous Daily Low	1504.64
Previous Weekly High	1515.38
Previous Weekly Low	1481.1
Previous Monthly High	1519.04
Previous Monthly Low	1455.5
Daily Fibonacci 38.2%	1508.54
Daily Fibonacci 61.8%	1510.95
Daily Pivot Point S1	1503.86
Daily Pivot Point S2	1499.15
Daily Pivot Point S3	1493.65
Daily Pivot Point R1	1514.07
Daily Pivot Point R2	1519.57
Daily Pivot Point R3	1524.28

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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