Gold Technical Analysis: Trapped in a sideways channel

Gold is moving in a sideways channel on the daily chart.
The odds are stacked in favor of range breakdown.

Omkar Godbole FXStreet Contributor

Gold is trading in a sideways manner around $1,461 per Oz in Asia.

The yellow metal is trapped in a sideways channel, represented by trendlines connecting Nov. 12 and Nov. 26 lows and Nov. 20 and Dec. 4 highs.

A channel breakdown, if confirmed, would imply a resumption of the sell-off from highs above $1,500 and open the doors for the 200-day average at $1,406. At press time, the lower edge the channel is seen at $1,454.

A range breakdown looks likely, as the odds are stacked in favor of the bears. For instance, the 50- and 100-day moving averages.

Also, markets have priced out prospects of a Federal Reserve rate cut in 2020. A range breakdown, however, would remain elusive if the planned US tariff hike on $160 billion of Chinese imports takes effect Sunday. That will likely boost haven demand for gold.

Daily chart

Trend: Neutral-to-bearish

Technical levels

XAU/USD

Overview
Today last price	1461.2
Today Daily Change	0.20
Today Daily Change %	0.01
Today daily open	1461

Trends
Daily SMA20	1465.51
Daily SMA50	1481.5
Daily SMA100	1487.66
Daily SMA200	1405.88

Levels
Previous Daily High	1465.4
Previous Daily Low	1458.82
Previous Weekly High	1484.06
Previous Weekly Low	1454.05
Previous Monthly High	1515.38
Previous Monthly Low	1445.8
Daily Fibonacci 38.2%	1462.88
Daily Fibonacci 61.8%	1461.33
Daily Pivot Point S1	1458.08
Daily Pivot Point S2	1455.15
Daily Pivot Point S3	1451.49
Daily Pivot Point R1	1464.66
Daily Pivot Point R2	1468.32
Daily Pivot Point R3	1471.25

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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