XAUUSD @ 62.50 – Support/Resistance analysis: Gold Price Forecast: bulls struggle around 50 DMA on the road to recovery

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XAUUSD @ 62.50 – Support/Resistance analysis: Gold Price Forecast: bulls struggle around 50 DMA on the road to recovery

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• Gold Price breaches the critical 50 DMA at $1,782 despite falling yields.
• China data-led triggers risk-aversion, boosts the safe-haven US dollar.
• XAU/USD remains exposed to testing the bullish 21 DMA on a daily closing below 50 DMA.

The pair currently trades last at 62.50.

The previous day high was 1804.04 while the previous day low was 1784.95. The daily 38.2% Fib levels comes at 1796.75, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1792.24, expected to provide resistance.

Gold Price is deep in the red in the American session, as investors resort to ‘sell-everything mode amid broad risk-aversion.

The latest leg down in the yellow metal took out the critical 50-Daily Moving Average (DMA) at $1,782, as the selling pressure intensified after the US stocks opened lower.

Risk-off flows extended into American trading, as downbeat Chinese activity data accentuated concerns over the health of the global economy while investors remained wary about the size of the next Fed rate hike move in the coming months.

Also read: Gold Price Forecast: XAU/USD closes the week above 50 DMA, what’s next?

Gold traders failed to capitalize on the unexpected rate cuts by the People’s Bank of China (PBOC), as it unnerved the market even further and offered extra zest to the best safety bet in the US dollar. Over the last hour, the bullion is finding some support near $1,770 levels amid a sharp sell-off in the US Treasury yields, investors scurry to the safe-haven American government bonds.

Technically, gold sellers eye a daily closing below the 50 DMA to resume the downslide towards the bullish 21 DMA at $1,756. Alternatively, if bulls manage to defend the former, then a rebound towards the $1.800 barrier will be inevitable.

The 14-day Relative Strength Index (RSI) has turned south, attacking the midline, justifying the recent weakness in the yellow metal.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1779.08 at the time of writing. Pair opened at 1802.11 and is trading with a change of -1.28 % .

The pair is trading above its 20 Daily moving average @ 1754.49, below its 50 Daily moving average @ 1783.14 , below its 100 Daily moving average @ 1837.71 and below its 200 Daily moving average @ 1842.1

The previous day high was 1804.04 while the previous day low was 1784.95. The daily 38.2% Fib levels comes at 1796.75, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1792.24, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1790.03, 1777.94, 1770.94
• Pivot resistance is noted at 1809.12, 1816.12, 1828.21

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