Gold Violates Symmetrical Triangle Pattern – Brace for a Sell Position!
On the flip side, the stronger US dollar, backed by the upbeat US data that was released recently, has also played a major role in weakening gold prices, as GOLD usually moves inversely to the US dollar. Conversely, the ongoing fears of the coronavirus (COVID-19) in Japan and a broadly cautious sentiment before this week’s key event, the FOMC meeting, are probing the upbeat market mood, which may help to limit any deeper losses in the gold price. The precious metal is trading at 1,865.04 and consolidating in the range between 1,858.79 and 1,867.93.
Gold – XAU/USD – Daily Support and Resistance
S3 1,810.14
S2 1,835.21
S1 1,850.69
Pivot Point 1,860.29
R1 1,875.77
R2 1,885.36
R3 1,910.44
GOLD trading was strongly bearish, as it tested the low level of 1,845, but now it has bounced off to trade at the 1,862 level. Gold has violated the upward trendline and the symmetrical triangle pattern at the 1,877 mark. On the lower side, the next support level for the precious metal remains at 1,857, extended by a double bottom support level. The other leading technical indicators, like the MACD and RSI, support a strong selling trend. Today, we need to keep an eye on the 1,871 level, as a bullish trend could be seen over this level, until 1,883, and the selling bias remains strong below the same level of 1,871.
Reference: FXLeader
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