Gold technical analysis: Under pressure in Asia, $1,477 is key support


  • Gold created an inside bar candle on Wednesday, signaling indecision in the market. 
  • A break below the candle's low of $1,477 would put the bears in a commanding position. 

Gold is currently trading at $1,488 per Oz, representing 0.13% losses on the day, having hit a high of $1,493 at 00:45 GMT. 

The metal has come under pressure despite the signs of risk aversion in the global markets. The US stocks declined on Wednesday with the Dow Jones Industrial Average falling by 22.82 points. As of now, Asian stocks are also reporting marginal losses. 

The International Monetary Fund (IMF) on Wednesday revised the 2019 global growth forecast lower by 0.2 percentage points to 3% – the lowest forecast since the 2008 financial crisis. Even so, the yellow metal is not drawing haven bids. 

Technically speaking, the immediate outlook is neutral, as the market is looking indecisive, according to Wednesday's inside bar candlestick pattern. 

A drop below the inside bar's low of$1,477 would mean the period indecision has ended with a downside break. That could be followed by a sell-off to Oct. 1's low near $1,460. 

The outlook would turn bullish if and when the metal rises above $1,520, invalidating the bearish lower highs setup. 

Daily chart

Trend: Cautiously bearish

Technical levels

XAU/USD

Overview
Today last price 1488.67
Today Daily Change -1.33
Today Daily Change % -0.09
Today daily open 1490
 
Trends
Daily SMA20 1499.44
Daily SMA50 1507.16
Daily SMA100 1450.74
Daily SMA200 1373.59
 
Levels
Previous Daily High 1491.35
Previous Daily Low 1477.15
Previous Weekly High 1516.85
Previous Weekly Low 1474.2
Previous Monthly High 1557.03
Previous Monthly Low 1464.61
Daily Fibonacci 38.2% 1485.93
Daily Fibonacci 61.8% 1482.57
Daily Pivot Point S1 1480.98
Daily Pivot Point S2 1471.96
Daily Pivot Point S3 1466.78
Daily Pivot Point R1 1495.18
Daily Pivot Point R2 1500.36
Daily Pivot Point R3 1509.38

 

 

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