Gold Technical Update
Gold has been trading in a rising channel since finding support near 1612. During the 4/10 US trading session, we are seeing a break below this channel. The market holds below the 200-hour simple moving average, reflecting a bearish bias, and the RSI pushes back below, showing loss of bullish momentum from the channel. A break below the 1628.00 pivot area opens up the 1611.83 low, and lower.
The daily chart below shows that the downside risk is limited to the 1560-1520 range support area. Being able to hold below the central pivot of 1666.50, is a sign of bearish intent. If after some bearish run, a rally respects the 1630 area as resistance, that would further confirm the bearish intent toward the lower region of the range that gold has been trading in since September 2011.
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Fan Yang CMT is a forex trader, analyst, educator and main contributor for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.