Gold Price Analysis: XAU/USD finds some support at a technical level near $1925

Gold is trading 0.50% lower as the dollar moves higher again on Thursday.
The price found some support at a key technical zone.

Rajan Dhall, MSTA FX Daily

Gold 4-hour chart

The US dollar and gold are in an important crossroads at the moment where the current trend is unclear. Longer-term gold has been in an incredible uptrend and since hitting a higher of USD 2,075.14 per troy once the price has pulled back 6.97%. This does not necessarily mean the trend is over but this is a pretty strong correction and could be a buying opportunity for the bulls.

Looking at the chart, the price has now bounced off the USD 1,925 per ounce support area. This price point is where the internal downward sloping trendline and short term trendline meet and cross over. The consolidation low is at USD 1,863.24 per ounce and if this level breaks to the downside then a more pronounced sell-off could be in store.

The Indicators are showing a mixed picture. The Relative Strength Index is bouncing off the oversold level. This is interesting as the market made a higher low and the indicator has made a lower low wave. This is called a bullish failure swing and it's a bullish sign. The MACD is more bearish as the histogram is red and the signal lines have just breached the zero level.

A key zone to watch is the USD 2,000 per ounce resistance zone. If the price breaks that zone above the red resistance then the all-time high could be tested again. On the downside, the aforementioned consolidation low at USD 1,863.24 is an important support and if it breaks the gold bulls could be in for some pain.

Additional levels

XAU/USD

Overview
Today last price	1935.66
Today Daily Change	-6.50
Today Daily Change %	-0.33
Today daily open	1942.16

Trends
Daily SMA20	1962.01
Daily SMA50	1896.66
Daily SMA100	1808.04
Daily SMA200	1686.09

Levels
Previous Daily High	1973.34
Previous Daily Low	1932.73
Previous Weekly High	1976.79
Previous Weekly Low	1902.76
Previous Monthly High	2075.32
Previous Monthly Low	1863.24
Daily Fibonacci 38.2%	1948.24
Daily Fibonacci 61.8%	1957.83
Daily Pivot Point S1	1925.48
Daily Pivot Point S2	1908.8
Daily Pivot Point S3	1884.87
Daily Pivot Point R1	1966.09
Daily Pivot Point R2	1990.02
Daily Pivot Point R3	2006.7

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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