Gold (XAUUSD) Consolidates above $1,762 Support as Bulls Resume Upside Momentum

Updated:

Key Resistance Levels: $1,900, $1,950, $2000
Key Support Levels: $1,750, $1, 700, $1,650

Gold (XAUUSD) Long-term Trend: Bearish
Gold (XAUUSD) has been consolidating above level $1761 support since December 2. The current downtrend has reached bearish exhaustion. Gold has fallen to the oversold region of the market. Buyers are likely to emerge to push prices upward. Besides, Gold could rebound above the current support to resume an upward move. The price action is characterized by small body candlesticks called Doji. This makes the price movement to be marginal.

XAUUSD – Daily Chart

Daily Chart Indicators Reading:
Gold is at level 43 of the Relative Strength Index for period 14. The market is in the downtrend zone and below the centerline 50. The 21-day SMA and the 50-day SMA are sloping horizontally indicating the sideways trend. Gold price is below the moving averages which makes it prone to fall.


Gold (XAUUSD) Medium-term bias: Bearish
On the 4 hour chart, the Gold price is in a downward move. The market has already declined to the low of $1,762 as bulls bought the dips. Buyers push Gold to the high $1.792 which attracted selling pressure. Meanwhile, on December 8 downtrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. The retracement indicates that Gold will fall to level 1.618 Fibonacci extension or $1,772.01.

XAUUSD – 4 Hour Chart

4-hour Chart Indicators Reading
Gold price is above the 25% range of the daily stochastic. The market has resumed bullish momentum. Buyers are attempting to push prices upward.

General Outlook for Gold (XAUUSD)
Gold’s (XAUUSD) price is consolidating above the $1,762 support. Gold has reached bearish exhaustion. There is a possibility that Gold will rebound above the current support.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.