Gold Technical Analysis: DXY recovery favors contracting triangle breakdown
|The 13-day-long contracting triangle seen in gold's 4-hour price chart is more likely to be breached to the downside, courtesy of the recovery rally in the US dollar - gold's biggest nemesis.
As of writing, gold is trading at $1,292 per Oz, having clocked a high of $1,295 earlier today. Notably, the dollar index (DXY), which tracks the value of the greenback, has risen by 1.18 percent in the last seven days.
4-hour chart
- A 4-hour close below the lower edge of the contracting triangle, currently at $1,287, would confirm a short-term top is in place at $1,300 and could yield a stronger pullback to $1,276.
- On the higher side, a break above $1,300 would revive the bullish view.
Trend: bearish, triangle breakdown likely
XAU/USD
Overview:
Today Last Price: 1291.64
Today Daily change: -1.5e+2 pips
Today Daily change %: -0.113%
Today Daily Open: 1293.1
Trends:
Previous Daily SMA20: 1281.08
Previous Daily SMA50: 1249.37
Previous Daily SMA100: 1231.38
Previous Daily SMA200: 1228.91
Levels:
Previous Daily High: 1295.25
Previous Daily Low: 1276.2
Previous Weekly High: 1297.15
Previous Weekly Low: 1279.35
Previous Monthly High: 1284.7
Previous Monthly Low: 1221.39
Previous Daily Fibonacci 38.2%: 1287.97
Previous Daily Fibonacci 61.8%: 1283.48
Previous Daily Pivot Point S1: 1281.12
Previous Daily Pivot Point S2: 1269.14
Previous Daily Pivot Point S3: 1262.07
Previous Daily Pivot Point R1: 1300.17
Previous Daily Pivot Point R2: 1307.23
Previous Daily Pivot Point R3: 1319.22
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.