ICM Technical Analysis : XAU/USD (Gold) 12 March 2020

ICM Technical Analysis : XAU/USD (Gold) – 12 March 2020

XAU/USD, in $ terms, extended its corrective slide Wednesday, weighed by the modest rebound in US Treasuries and the US dollar index.

Technically, H4 price has the unit languishing south of a familiar 38.2% Fibonacci retracement at 1649.9, after dipping from Quasimodo resistance at 1694.8. Recent moves could lead to an approach towards March and February’s opening levels at 1591.7 and 1593.0, respectively. With regards to the relative strength index (RSI) we’re seen trading slightly beneath 50.00 right now, suggesting the bears hold control.

Weekly price, after attempting to hold north of support at 1667.3, is seen dipping its toe in waters south of the said support, signifying we could be heading for trend line support, taken from the low 1269.6. Resistance on the daily timeframe at 1687.4 remains a dominant fixture on this timeframe. Continued downside from here has the 1563.1 February 28 low in sight, followed closely by support at 1550.3.

Areas of consideration:

Weekly support failing to offer much of a ‘floor’, as well as daily price navigating lower ground beneath resistance at 1687.4, may see further losses below 1649.9 (38.2% Fibonacci support) materialise on the H4 scale. A retest at 1649.9 will likely encourage sellers, particularly if the retest forms by way of a H4 bearish candlestick signal. Entry/risk parameters can then be set according to the candlestick’s structure, targeting 1590.0ish.

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