Gold Technical Analysis: Risk-off mood helped limit deeper losses, only for the time being

Haresh Menghani FXStreet

• The precious metal failed to confirm previous session's bullish breakthrough a short-term descending trend-line and came under some renewed selling pressure on Friday.

• Weakness below 100-hour SMA was seen as a key trigger for bearish traders, though now seemed to show some resilience near the $1220 horizontal zone amid risk-off mood.

• Technical indicators on the 1-hourly chart have been gaining negative momentum and started losing traction on 4-hourly/daily charts, suggesting a further intraday decline.

• However, traders are likely to wait for a sustained breakthrough 23.6% Fibo. level of the recent up-move and a subsequent fall below $1220 level before initiating aggressive bearish positions.

Gold 1-hourly chart

XAU/USD

Overview:
    Today Last Price: 1224.14
    Today Daily change: -2.7e+2 pips
    Today Daily change %: -0.222%
    Today Daily Open: 1226.86
Trends:
    Previous Daily SMA20: 1219.12
    Previous Daily SMA50: 1217.5
    Previous Daily SMA100: 1207.24
    Previous Daily SMA200: 1237.34
Levels:
    Previous Daily High: 1229.09
    Previous Daily Low: 1224.6
    Previous Weekly High: 1225.4
    Previous Weekly Low: 1196
    Previous Monthly High: 1243.43
    Previous Monthly Low: 1182.54
    Previous Daily Fibonacci 38.2%: 1227.37
    Previous Daily Fibonacci 61.8%: 1226.32
    Previous Daily Pivot Point S1: 1224.61
    Previous Daily Pivot Point S2: 1222.36
    Previous Daily Pivot Point S3: 1220.12
    Previous Daily Pivot Point R1: 1229.1
    Previous Daily Pivot Point R2: 1231.34
    Previous Daily Pivot Point R3: 1233.59

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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