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ANALYSIS :Gold technical analysis: Bears challenge $1390 support area ahead of Powell’s speech

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Gold technical analysis: Bears challenge $1390 support area ahead of Powell’s speech

  • Gold traded with a mild negative bias for the fourth consecutive session on Tuesday and remained well within the striking distance of Friday’s post-NFP swing low.
  • The precious metal now seems to have found acceptance below 100-period SMA on the 4-hourly chart and is currently flirting with one-week-old trend-line support.

With technical indicators on hourly charts sliding further into the bearish territory, a sustained breakthrough the mentioned support will now be seen as a key trigger for bearish traders and pave the way for further intraday weakness.

However, oscillators on the daily chart, though have been losing positive momentum, maintained their bullish bias and thus, warrant come caution before placing any aggressive bets ahead of the Fed Chair Jerome Powell’s scheduled speech.

Hence, it would be prudent to wait for a sustained break below the said support, currently near the $1390 region, before positioning for any further depreciating move back towards the last week’s swing low, around the $1382-81 area.

On the flip side, immediate resistance is now pegged near the $1405 region (50-period SMA on the 4-hourly chart), above which the commodity is likely to extend the positive momentum back towards multi-year tops – around the $1440 region, with some intermediate resistance near the $1423-27 zone.

Gold 4-hourly chart

 

XAU/USD

Overview
Today last price 1390.5
Today Daily Change -4.80
Today Daily Change % -0.34
Today daily open 1395.3
Trends
Daily SMA20 1343.99
Daily SMA50 1306.35
Daily SMA100 1306.22
Daily SMA200 1275.4
Levels
Previous Daily High 1407.68
Previous Daily Low 1391.89
Previous Weekly High 1436.2
Previous Weekly Low 1382.02
Previous Monthly High 1438.66
Previous Monthly Low 1306.18
Daily Fibonacci 38.2% 1397.92
Daily Fibonacci 61.8% 1401.65
Daily Pivot Point S1 1388.9
Daily Pivot Point S2 1382.5
Daily Pivot Point S3 1373.12
Daily Pivot Point R1 1404.69
Daily Pivot Point R2 1414.07
Daily Pivot Point R3 1420.47
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