Gold Technical Update

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XAU/USD (Gold)

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The 4H gold chart shows a market that has anchored into a bear-trend. The RSI has dipped below 30 and stayed below 60. Price action continues to make lower highs and lower lows. An important development is that the central pivot at about 1662 acted as resistance after it broke as support. This is a sign of bearish continuation in the short-term.

The daily chart shows the market crossing the central pivot, pushing the RSI reading below 40, and thus confirming that the market is still in sideways trading in the medium term. The next key support area is between 1520 and 1560 area. At these prices, and when the RSI tags 30, we may expect demand short-term to medium-term demand with a target back toward the central pivot area.

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We'll follow up with the outlook on gold during the Market Intelligence Briefing on Friday 3/16 8:00ET.

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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.