Gold Technical Analysis: trendline support exposed after range breakdown

Gold is currently trading largely unchanged on the day at $1,282.
The yellow metal fell by $12 or 0.8 percent on Friday, confirming a downside break of the two-week long narrowing price range.
An extended period of consolidation is often followed by a big move in the direction of the breakout.
As a result, gold could soon drop to the support of the trendline connecting the Nov. 13 and Nov. 28 lows. At press time, that support is seen at $1,264.

Omkar Godbole FXStreet Contributor

Daily chart

Validating the bearish view put forward by the range breakdown is the bearish crossover between the 5- and 10-day moving average (MAs) and the ascending trendline breakdown on the 14-day relative strength index (RSI).

Trend: bearish

XAU/USD

Overview:
    Today Last Price: 1281.46
    Today Daily change: 0.66 pips
    Today Daily change %: 0.05%
    Today Daily Open: 1280.8
Trends:
    Daily SMA20: 1283.9
    Daily SMA50: 1252.63
    Daily SMA100: 1233
    Daily SMA200: 1228.8
Levels:
    Previous Daily High: 1292.56
    Previous Daily Low: 1280.65
    Previous Weekly High: 1295.9
    Previous Weekly Low: 1276.2
    Previous Monthly High: 1284.7
    Previous Monthly Low: 1221.39
    Daily Fibonacci 38.2%: 1285.2
    Daily Fibonacci 61.8%: 1288.01
    Daily Pivot Point S1: 1276.78
    Daily Pivot Point S2: 1272.76
    Daily Pivot Point S3: 1264.88
    Daily Pivot Point R1: 1288.69
    Daily Pivot Point R2: 1296.57
    Daily Pivot Point R3: 1300.59

Author

Omkar Godbole

FXStreet Contributor

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

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.