Gold Price Analysis: XAU/USD trades near rising channel support
- Gold is flirting with the lower end of a 2.5-week long-ascending channel.
- A breakdown would mean a continuation of the sell-of from mid-September highs.
Gold is trading near $1,895 at press time. That level is housing the lower end or support of the trendline connecting Sept 28 and Oct 7 lows and Oct 2 and Oct 12 highs.
The channel breakdown, if confirmed, would imply a resumption of the sell-off from the Sept 16 high of $1,973 and open the doors to the September low of $1,848.
The 14-day relative strength index is currently reporting bearish conditions with a below-50 print. As such, a downside break of the rising channel cannot be ruled out.
On the higher side, a close above the Oct 12 high of 1,933 is needed to invalidate the bearish lower highs setup on the daily chart and expose resistance at $2,000.
Daily chart
Trend: Bearish
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
