ICM Technical Analysis : XAU/USD (Gold) 10 March 2020

ICM Technical Analysis : XAU/USD (Gold) – 10 March 2020

A tumultuous day had Treasury yields collapse to all-time lows, oil prices fall near 30% and the US dollar index drive to lows beyond 95.00. The price of gold, in $ terms, nonetheless, echoed a reasonably subdued state.

Technical headlines has weekly price testing support at 1667.3, after failing to sustain gains past 1703.6. Continued demand for bullion this week may welcome Quasimodo resistance at 1741.9 into the fight, whereas a breach of 1667.3 might highlight trend line support, taken from the low 1269.6.

Resistance on the daily timeframe at 1687.4 remains in play, with price fading the level in the shape of a long-legged doji indecision candle Friday and again on Monday. A close above the said level adds conviction to a run higher, targeting a daily Quasimodo resistance plotted at 1718.8.

H4 Quasimodo resistance at 1694.9 entered view Monday, guiding candle action lower, surpassing H4 support at 1651.9 and testing a 38.2% Fib retracement at 1643.2. A rotation lower, one that overwhelms current H4 supports, could lead to an approach forming to March and February’s opening levels at 1591.7 and 1593.0, respectively. In respect to the relative strength index (RSI) we’re seen trading off overbought levels right now, closing in on 50.00.

Areas of consideration:

Although we effectively cleared weekly resistance at 1667.3, price has failed to print a decisive close north of the base. Therefore, entering long based on this, particularly as daily resistance at 1687.4 remains in motion, is chancy, according to the chart studies. A daily close north of 1687.4, of course, would add conviction to the upside.

To take advantage of any downside in this market, traders may consider waiting for the current H4 supports to give way, consequently unlocking the door for bearish scenarios to around 1590ish.

To take advantage of upside, a daily close north of 1687.4, as stated above, adds conviction, though remain aware of daily Quasimodo resistance at 1718.0.

Disclaimer: The information contained in this material is intended for general advice only.