Gold came under renewed
selling pressure with the start of the new trading week and even marked fresh
new monthly low at $1312. The safe-haven asset demand is fading amid rallying
DXY and US
Treasury yields at multi-year
highs and adding calming down of the geopolitical
tension in the Korean peninsula.
Technically speaking the short term outlook remains bearish. On the four hour time frame the price is developing below its flat 100-day and 200-day SMAs and today crossed to below its 20-day bearish SMA. RSI and stochastic are showing strong downward momentum and are ready to enter into their oversold areas.
Looking at a broader picture since the beginning of 2018 the precious metal is seen in range trading moving back and forth between $1305 and $1366. Last week the 23.6% Fibonacci retracement of latest December to January bullish run was broken and today the bears conquered the next 38.2% Fibo at $1316. Last one is considered as a significant level because has supported XAU/USD for oven a month. Hence the bearish trajectory might continue towards $1309-$1305 area, which is the lower edge of the 2018 range.
Technically speaking the short term outlook remains bearish. On the four hour time frame the price is developing below its flat 100-day and 200-day SMAs and today crossed to below its 20-day bearish SMA. RSI and stochastic are showing strong downward momentum and are ready to enter into their oversold areas.
Looking at a broader picture since the beginning of 2018 the precious metal is seen in range trading moving back and forth between $1305 and $1366. Last week the 23.6% Fibonacci retracement of latest December to January bullish run was broken and today the bears conquered the next 38.2% Fibo at $1316. Last one is considered as a significant level because has supported XAU/USD for oven a month. Hence the bearish trajectory might continue towards $1309-$1305 area, which is the lower edge of the 2018 range.
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