Gold (XAUUSD) Is in a Sideways Move, Faces Stiff Resistance at Level $1,780

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

Gold (XAUUSD) Long-term Trend: Ranging
Following the last bearish impulse on June 18, Gold (XAUUSD) has continued its sideways movement in a confined range. The gold price has been fluctuating between levels $1,720 and $1,820. Today, the market is rising as price breaks above the 21-day SMA. Since September 7, the bulls are yet to break above the 50-day SMA. A break above the moving averages will accelerate the upward moves. For instance, the Gold price will rise and break the initial resistance at $1,820. The bullish momentum will extend to retest the overhead resistance at $1,900.

Daily Chart Indicators Reading:
The 21-day SMA and the 50-day SMA are sloping horizontally indicating the sideways trend. Gold is at level 45 of the Relative Strength Index period 14. It indicates that the market is in the bearish trend zone and below the centerline 50. Gold is capable of falling on the downside.

Gold (XAUUSD) Medium-term bias: Ranging
On the 4 hour chart, the Gold price has risen but dropped sharply after testing the Fibonacci level. That is, on September 30 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that Gold will rise to level 1.618 Fibonacci extension or $1,790.63. From the price action, the market rose to $1,780 high and dropped sharply to $1,757 low.

4-hour Chart Indicators Reading
Gold is below the 40% range of the daily stochastic. Gold is in a bearish momentum. The 21-day SMA and the 50-day SMA are sloping horizontally indicating the sideways trend.

General Outlook for Gold (XAUUSD)
Gold’s (XAUUSD) price rebounded above the $1,755 and rallied to $1,780 resistance zone. Gold was repelled immediately indicating that XAUUSD lacks buyers at a higher price level. The current range-bound move may continue for a few more days.


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