Sharp reversal in gold shows recovery is not an easy road. (Pivot Orderbook analysis)
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- Sharp reversal in gold shows recovery is not an easy road.
- The dollar trims losses on Friday amid risk appetite and a rebound in US yields.
- The daily chart shows XAUUSD in a bearish channel, hovering around $1710.
The pair currently trades last at 1712.93.
The previous day high was 1728.27 while the previous day low was 1704.01. The daily 38.2% Fib levels comes at 1713.28, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1719.0, expected to provide resistance.
Gold turned to the downside again after approaching the $1730 area and pulled back sharply toward $1710, erasing daily gains on Friday. Stabilization of the US Dollar and a rebound in yields weighed on the yellow metal.
XAUUSD failed to break the critical resistance around $1730 and weakened. A break above would strengthen the outlook for gold, targeting first $1745 and then exposing a downtrend line at $1760. On the flip side, a daily close below $1695 would expose the long term support area at $1675 (2021 and 2022 lows).
The greenback moved off lows, with the DXY rising back toward 109.00 and the US 10-year yield recovering 3.30%. Those moves, made the barrier around $1730 in gold stronger.
Not even the better tone in Wall Street capped the retreat. XAUUSD found support at $1710$ and it is about to end the week hovering around $1715, below key resistance levels but also holding above $1700.
On Thursday, Fed Chair Powell continued with the hawkish tone. Next week, the key number will be August US CPI on Tuesday. If market participants see in the numbers that a peak has been reach, gold could benefit.
Technical Levels: Supports and Resistances
XAUUSD currently trading at 1712.93 at the time of writing. Pair opened at 1708.45 and is trading with a change of 0.26 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1712.93 |
| 1 | Today Daily Change | 4.48 |
| 2 | Today Daily Change % | 0.26 |
| 3 | Today daily open | 1708.45 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1739.05, 50 SMA 1745.74, 100 SMA @ 1797.82 and 200 SMA @ 1833.8.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1739.05 |
| 1 | Daily SMA50 | 1745.74 |
| 2 | Daily SMA100 | 1797.82 |
| 3 | Daily SMA200 | 1833.80 |
The previous day high was 1728.27 while the previous day low was 1704.01. The daily 38.2% Fib levels comes at 1713.28, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1719.0, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1698.88, 1689.32, 1674.62
- Pivot resistance is noted at 1723.14, 1737.84, 1747.4
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1728.27 |
| Previous Daily Low | 1704.01 |
| Previous Weekly High | 1745.58 |
| Previous Weekly Low | 1688.92 |
| Previous Monthly High | 1807.93 |
| Previous Monthly Low | 1709.68 |
| Daily Fibonacci 38.2% | 1713.28 |
| Daily Fibonacci 61.8% | 1719.00 |
| Daily Pivot Point S1 | 1698.88 |
| Daily Pivot Point S2 | 1689.32 |
| Daily Pivot Point S3 | 1674.62 |
| Daily Pivot Point R1 | 1723.14 |
| Daily Pivot Point R2 | 1737.84 |
| Daily Pivot Point R3 | 1747.40 |
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