Gold Technical Analysis: Set-up points to extension of the well-established bearish trend

Haresh Menghani FXStreet

• The precious metal struggled to register any meaningful recovery and has been consolidating within a narrow trading range, just above one-month lows, forming a rectangular chart pattern on the 1-hourly chart.

• A Rectangle is considered as a continuation pattern that marks a pause/consolidation phase, though is not complete until a breakout has occurred and sometimes marks the end of a well-established trend - bearish in this case.

• However, given that intraday recovery attempts are sold into near 50-hour SMA, coupled with bearish technical indicators on hourly/daily charts suggest that the selling pressure might still be far from over.

Gold 1-hourly chart

XAU/USD

Overview:
    Last Price: 1200.64
    Daily change: -1.5e+2 pips
    Daily change: -0.121%
    Daily Open: 1202.1
Trends:
    Daily SMA20: 1223.28
    Daily SMA50: 1213.43
    Daily SMA100: 1206.57
    Daily SMA200: 1241.19
Levels:
    Daily High: 1205.2
    Daily Low: 1196
    Weekly High: 1236.6
    Weekly Low: 1206.3
    Monthly High: 1243.43
    Monthly Low: 1182.54
    Daily Fibonacci 38.2%: 1201.69
    Daily Fibonacci 61.8%: 1199.51
    Daily Pivot Point S1: 1197
    Daily Pivot Point S2: 1191.9
    Daily Pivot Point S3: 1187.8
    Daily Pivot Point R1: 1206.2
    Daily Pivot Point R2: 1210.3
    Daily Pivot Point R3: 1215.4

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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