#XAUUSD @ 3.9437 Gold price grinds higher by 0.24%, though facing solid resistance around $1660. (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 price grinds higher by 0.24%, though facing solid resistance around $1660.
• If XAU/USD clears $1670, a test of $1700 is on the cards.
• A formation of a bullish flag in the XAU/USD hourly chart opens the door for further upside.

The pair currently trades last at 3.9437.

The previous day high was 1670.76 while the previous day low was 1643.99. The daily 38.2% Fib levels comes at 1654.22, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1660.53, expected to provide resistance.

Gold price advances steadily during the North American session, though it remains capped below the 20-day Exponential Moving Average (EMA), despite falling US Treasury yields underpinning the yellow metal prices, as gold recovers after hitting a daily low of $1638.40. At the time of writing, the XAU/USD is trading at $1653 a troy ounce, above its opening price by 0.24%.

From a daily chart perspective, XAU/USD is downward biased, as it has remained since sliding below the 200-EMA in mid-June 2022. Worth noting that Tuesday’s daily high was shy of hitting a downslope trendline, drawn from October highs, which confluences with the 20-day EMA. So XAU buyers need to clear $1670, to exacerbate a rally towards the 100-day EMA at $1690, ahead of $1700. On the flip side, a daily close below Monday’s low of $1644 would cement gold’s downward biased, which would be unable to capitalize, despite lower US bond yields, opening the door for further losses.

Short-term, the XAU/USD hourly chart illustrates the formation of a bullish flag, opening the door for further gains. Worth noting that gold is neutral-to-upward biased, and once it clears, the October 24 high of $1670 will exacerbate a rally toward $1700.

The XAU/USD first resistance would be the R1 daily pivot at $1665, ahead of $1670. Break above will expose the R2 pivot at $1681, followed by the R3 daily pivot level at $1692.42, ahead of $1700.

On the other hand, if XAU/USD slumps below the confluence of several EMAs, lead by the 50, 20, and 200-EMA around $1647-$1651, would send the yellow-metal price toward the convergence of the 100-EMA and the S1 daily pivot around $1639-41. Once cleared, the following demand zone would be the bullish-flag bottom trendline around $1636.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1653.48 at the time of writing. Pair opened at 1649.74 and is trading with a change of 0.23 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1667.34, 50 SMA 1693.59, 100 SMA @ 1737.75 and 200 SMA @ 1813.4.

The previous day high was 1670.76 while the previous day low was 1643.99. The daily 38.2% Fib levels comes at 1654.22, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1660.53, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1638.9, 1628.06, 1612.13
• Pivot resistance is noted at 1665.67, 1681.6, 1692.44

[/s2If]
Join Our Telegram Group