Bearish momentum has guided the XAU/USD exchange rate since last Monday. The yellow metal failed to pick up momentum during this time, as it was restricted by the 55-hour SMA. The given line was breached early in the morning, thus pointing to possible appreciation.
It is likely that bulls dominate the market during the following hours. However, gains might not be significant due to the 200-hour, 55– and 100-period (4H) SMAs located nearby at 1,250.00. This level could work as an unbreakable resistance today, at least, thus sending the pair back lower.
Technical indicators are likewise bearish. In terms of support, the 2018 low located at 1,235.00 should remain intact.
It is likely that bulls dominate the market during the following hours. However, gains might not be significant due to the 200-hour, 55– and 100-period (4H) SMAs located nearby at 1,250.00. This level could work as an unbreakable resistance today, at least, thus sending the pair back lower.
Technical indicators are likewise bearish. In terms of support, the 2018 low located at 1,235.00 should remain intact.
Comment:
The yellow mental shown high volatility against the US Dollar on Tuesday. This decline occurred after the commodity price hit a strong resistance level formed by the 100-hour simple moving average.
By the early hours of Wednesday trading session, the pair has moved closer to the lower boundary of a descending channel and could be set for a breakout within this session.
Everything being equal, the XAU/USD exchange rate is likely to continue its downward movement during the following hours. Meanwhile, technical indicators flash sell signals.
By the early hours of Wednesday trading session, the pair has moved closer to the lower boundary of a descending channel and could be set for a breakout within this session.
Everything being equal, the XAU/USD exchange rate is likely to continue its downward movement during the following hours. Meanwhile, technical indicators flash sell signals.
Comment:
The strong 1% plunge of the XAU/USD exchange rate mid-Tuesday was followed by minor fluctuations in between the monthly S1 and a channel line at 1,320.00 and 1,222.50, respectively. This situation had not changed on Thursday morning, as well.
Technical indicators are generally neutral for this session, but it is likely that the 55-hour SMA continues to pressure Gold lower. The nearest support that could limit this fall is the 61.80% Fibonacci retracement at 1,216.00. These retracement lines were re-drawn today from the 2017/2018 low of 1,122.00, as the previous seven-month low was breached yesterday.
In general, the rate should move towards the upper channel line during the remaining part of this week.
The strong 1% plunge of the XAU/USD exchange rate mid-Tuesday was followed by minor fluctuations in between the monthly S1 and a channel line at 1,320.00 and 1,222.50, respectively. This situation had not changed on Thursday morning, as well.
Technical indicators are generally neutral for this session, but it is likely that the 55-hour SMA continues to pressure Gold lower. The nearest support that could limit this fall is the 61.80% Fibonacci retracement at 1,216.00. These retracement lines were re-drawn today from the 2017/2018 low of 1,122.00, as the previous seven-month low was breached yesterday.
In general, the rate should move towards the upper channel line during the remaining part of this week.
It is apparent that the strong downside momentum which prevailed last week is starting to allay. Moreover, the pair is diminishing its trading range between a channel line and a short-term trend-line.
The 55-hour SMA continues to guide the pair. Despite pointing to a possible upside breakout on Monday, Gold lacked the necessary bullish momentum to breach this resistance and thus re-tested its 2018 low of 1.237.00.
It is likely that the rate continues to trade in the aforementioned triangle-like formation until the 55– and 100-hour SMAs are breached. A subsequent surge is unlikely to surpass the strong resistance of the 200-hour SMA and the monthly PP at 1,270.00.