#XAUUSD @ 1,738.45 Gold price rebounds from intraday low to pare recent losses ahead of the key catalysts., @nehcap view: Further downside expected (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 rebounds from intraday low to pare recent losses ahead of the key catalysts.
• Market sentiment remains sluggish as holiday in Japan restricts bond moves, pre-data caution also challenges XAU/USD traders.
• Bullion bears await the clear signs of Fed’s 75 bps rate hike in December.

The pair currently trades last at 1738.45.

The previous day high was 1749.81 while the previous day low was 1737.1. The daily 38.2% Fib levels comes at 1744.95, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1741.96, expected to provide resistance.

Gold price (XAU/USD) picks up bids to consolidate the intraday losses around $1,738 during early Wednesday morning in Europe.

In doing so, the yellow metal cheers the US Dollar weakness ahead of the key data/events scheduled for publishing today. Also likely to have recently favored the metal prices could be the mixed signals from China, despite spreading the coronavirus woes. However, the market’s cautious mood and hopes of hawkish central bank actions join the pessimism surrounding Beijing to keep the XAU/USD bears hopeful.

US Dollar Index (DXY) takes offers to refresh the intraday low near 106.95, down for the second consecutive day, as the US Treasury yields remain pressured as European markets become active. The bond coupons remained mostly sluggish and allowed the DXY bears to take a breather earlier in the day amid a holiday in Tokyo. The reason could be linked to Japan’s status as Asia’s major bond trader.

Recently firmer US data and mixed comments from the Federal Reserve (Fed) officials seemed to have challenged the hawkish expectations from the US central bank, which in turn reduces the US Dollar’s safe-haven demand.

Elsewhere, China’s daily coronavirus counts head towards the record top marked in April while the virus numbers from Beijing, Shanghai and Chongqing also increased. On the same line were headlines from the South China Morning Post (SCMP) quoting Nomura’s Chief Economist Lu Ting as saying, “China’s economic growth next year appears to entirely hinge on a potential exit from its zero-covid policy, and even if such a shift occurs, more pain is inevitable before the real recovery.”

However, an absence of any virus-led deaths from Beijing, after the previous day’s two, joins hopes of recovery and more stimulus to underpin the XAU/USD rebound.

Amid these plays, the US stock futures remain sluggish but the equity traders in Europe and the UK appear optimistic after the previous day’s upbeat closing of Wall Street.

Hence, a likely cautious optimism could help the metal prices to pare recent losses but the overall pessimism surrounding China and Fed’s next moves can weigh on the XAU/USD prices.

Also read: Gold Price Forecast: Federal Reserve minutes could help XAU/USD confirm a bull flag

A sustained U-turn from the multi-day-old resistance line joins the 10-DMA breakdown and impending bear cross on the Moving Average Convergence and Divergence (MACD) indicator to keep the Gold sellers hopeful.

That said, tops marked in September and October, respectively near $1,735 and $1,729, lure the intraday sellers of the XAU/USD ahead of highlighting the previous resistance line from September 12, around $1,720.

In a case where the yellow metal remains bearish past $1,720, July’s low of $1,680 will be in focus.

Meanwhile, the 50% Fibonacci retracement level of Gold’s June-September downturn, near $1,748, restricts immediate recovery of the metal ahead of the 10-DMA level of $1,757.

It’s worth noting, however, that the XAU/USD bulls should remain cautious unless witnessing a clear upside break of the $1,778 resistance confluence, comprising the previously stated resistance line from July 04 and the 61.8% Fibonacci retracement level.

Trend: Further downside expected

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1738.04 at the time of writing. Pair opened at 1740.43 and is trading with a change of -0.14% % .

The pair is trading above its 20 Daily moving average @ 1706.46, above its 50 Daily moving average @ 1682.38 , above its 100 Daily moving average @ 1711.67 and below its 200 Daily moving average @ 1800.81

The previous day high was 1749.81 while the previous day low was 1737.1. The daily 38.2% Fib levels comes at 1744.95, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1741.96, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1735.08, 1729.74, 1722.37
• Pivot resistance is noted at 1747.79, 1755.16, 1760.5

[/s2If]
Join Our Telegram Group