Gold Technical Analysis: Set-up points to an extension of the overnight bearish breakdown
• The precious metal continued with its struggle to register any meaningful recovery and was seen oscillating in a narrow trading band, forming a rectangle on the 1-hourly chart.
• Given the overnight bearish breakthrough the $1220 important horizontal support, the rectangle would be categorized as a continuation pattern that marks a pause in the trend.
• Technical indicators on hourly charts have already recovered from oversold territory and retain their bearish bias on the daily chart, further reinforcing the near-term negative outlook.
• Traders now seemed to wait for a convincing break below 100-day SMA and the Fed Chair Jerome Powell's scheduled speech before place aggressive near-term bearish bets.
Gold 1-hourly chart
XAU/USD
Overview:
Today Last Price: 1214.2
Today Daily change: -90 pips
Today Daily change %: -0.0741%
Today Daily Open: 1215.1
Trends:
Previous Daily SMA20: 1218.09
Previous Daily SMA50: 1218.92
Previous Daily SMA100: 1207.68
Previous Daily SMA200: 1235.93
Levels:
Previous Daily High: 1231.8
Previous Daily Low: 1212
Previous Weekly High: 1230.3
Previous Weekly Low: 1217.7
Previous Monthly High: 1243.43
Previous Monthly Low: 1182.54
Previous Daily Fibonacci 38.2%: 1219.56
Previous Daily Fibonacci 61.8%: 1224.24
Previous Daily Pivot Point S1: 1207.47
Previous Daily Pivot Point S2: 1199.83
Previous Daily Pivot Point S3: 1187.67
Previous Daily Pivot Point R1: 1227.27
Previous Daily Pivot Point R2: 1239.43
Previous Daily Pivot Point R3: 1247.07