You are here: Home > articles > Forex > Technical Analysis – Gold maintains weak bias in near term; broader trend is neutral
Technical Analysis – Gold maintains weak bias in near term; broader trend is neutral
June 4, 2018 9:26 amVideo
Latest News
- Analysis for GBP/USD on April 16th. The pound should not count on support from Powell April 16, 2024
- Analysis for EUR/USD on April 16th. The southern trend has been put on pause for correction April 16, 2024
- USD/JPY: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- GBP/USD: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- Trading Signals for GBP/USD for April 16-18, 2024: buy above 1.2405 or 1.2450 (21 SMA – 0/8 Murray) April 16, 2024
- EUR/USD: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- AUD/USD: Australian dollar remains under pressure April 16, 2024
- GBP/USD: trading plan for the US session on April 16th (analysis of morning deals). The pound was quickly bought back around April 16, 2024
- Trading Signals for BITCOIN (BTC/USD) for April 16-18, 2024: buy above $62,500 (4/8 Murray – 21 SMA) April 16, 2024
- Technical Analysis – USDCAD blossoms ahead of central bank speeches April 16, 2024
- EUR/USD: trading plan for the US session on April 16th (analysis of morning deals). Fewer people are willing to sell euro April 16, 2024
- EUR/USD. April 16th. Bears continue to advance against the backdrop of strong US statistics April 16, 2024
- Euro, sterling extend weakness April 16, 2024
- GBP/USD. April 16th. British statistics didn’t capture traders’ attention April 16, 2024
- Technical Analysis – EURCHF ticks up after strong losses April 16, 2024
- Technical Analysis – JP 225 index tests crucial support zone April 16, 2024
- Market Comment – Stocks slide, dollar soars as rate cut bets take another hit April 16, 2024
- Forex forecast 04/16/2024: EUR/USD, USDX, Gold and SP500 from Sebastian Seliga April 16, 2024
- GBP/USD: trading tips for beginners for European session on April 16 April 16, 2024
- EUR/USD: trading tips for beginners for European session on April 16 April 16, 2024
Gold remains under pressure and risk is still to the downside as prices continue to drift lower from the 1300 psychological level. It is worth mentioning that the precious metal has been developing within a sideways channel since May 23 with upper boundary the 1307.50 resistance level and lower boundary the 1289 support barrier. The short-term technical indicators are bearish and point to more weakness in the market.
Looking at the 4-hour chart, gold prices are looking capped by the 20 and 40-simple moving averages which are negatively aligned after a bearish crossover that took place last Friday. The Relative Strength Index (RSI) is holding in the negative zone, while the MACD lies below its trigger and zero lines.
The next target to have in mind if the price slips below the range is the May 21 low at 1282. At this stage, the market would likely see a resumption of the downtrend and put in place a lower low at 1270, near the 38.2% Fibonacci retracement level of the upleg from 1122 to 1366.
Upsides moves are likely to find resistance at the 1307.50. This is the 23.6% Fibonacci mark and if the price successfully surpasses it, it would retest the 200-simple moving average in the 4-hour chart around 1310.70. Rising above this area would help shift the focus to the upside towards 1317.
In the short-term, the bearish phase remains in play especially if gold prices continue to trade below the 23.6% Fibonacci and under the 1300 key level, while the 200-day SMA is acting as strong resistance level near 1310.
Related Posts: