#XAUUSD @ 3.9345 Gold retreats from a $1,670 high on Friday to the $1,645 area so far. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• Gold retreats from a $1,670 high on Friday to the $1,645 area so far.
• The US dollar regains lost ground on a cautious market.
• XAU/USD is testing support at $1,640.

The pair currently trades last at 3.9345.

The previous day high was 1658.24 while the previous day low was 1617.35. The daily 38.2% Fib levels comes at 1642.62, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1632.97, expected to provide resistance.

Gold futures have opened the week on a moderately bearish tone, giving away some of the ground taken on the sharp recovery witnessed last Friday. The yellow metal has pulled back from a 10-day high at $1,670 and is now testing the support area at $1,640.

Investors remain cautious in the week opening, awaiting the monetary policy decisions by some of the world’s major central banks, while stock markets are mixed. In the US, the Dow Jones and the S&P Indexes appreciate 0.8% and 0.6%, while the Nasdaq Index eases 0.1%.

The market seems to have digested a news report published by the Wall Street Journal on Friday, suggesting that the Federal Reserve would be open to moderate its tightening cycle in December. The US dollar, as a result, has shrugged off Friday’s weakness to appreciate moderately higher which is weighing on gold prices.

On the downside, the support area at $1,645 Is protecting the XAU/USD from further decline, which might push the yellow metal to retest $1,615 (September 28, October 21 lows) ahead of April 2020 lows at $1,575.

On the upside, the pair should appreciate past Friday’s top at $1,670 and the 50-day SMA at $1,695 to regain bullish momentum and set its target at the $1,730/35 area (September 13, October 4 highs).

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1648.31 at the time of writing. Pair opened at 1657.35 and is trading with a change of -0.55 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1665.97, 50 SMA 1696.19, 100 SMA @ 1739.67 and 200 SMA @ 1814.23.

The previous day high was 1658.24 while the previous day low was 1617.35. The daily 38.2% Fib levels comes at 1642.62, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1632.97, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1630.39, 1603.42, 1589.5
• Pivot resistance is noted at 1671.28, 1685.2, 1712.17

[/s2If]
Join Our Telegram Group