Gold Technical Analysis: DXY recovery favors contracting triangle breakdown
The 13-day-long contracting triangle seen in gold's 4-hour price chart is more likely to be breached to the downside, courtesy of the recovery rally in the US dollar - gold's biggest nemesis.
As of writing, gold is trading at $1,292 per Oz, having clocked a high of $1,295 earlier today. Notably, the dollar index (DXY), which tracks the value of the greenback, has risen by 1.18 percent in the last seven days.
4-hour chart
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- A 4-hour close below the lower edge of the contracting triangle, currently at $1,287, would confirm a short-term top is in place at $1,300 and could yield a stronger pullback to $1,276.
- On the higher side, a break above $1,300 would revive the bullish view.
Trend: bearish, triangle breakdown likely
XAU/USD
Overview:
Today Last Price: 1291.64
Today Daily change: -1.5e+2 pips
Today Daily change %: -0.113%
Today Daily Open: 1293.1
Trends:
Previous Daily SMA20: 1281.08
Previous Daily SMA50: 1249.37
Previous Daily SMA100: 1231.38
Previous Daily SMA200: 1228.91
Levels:
Previous Daily High: 1295.25
Previous Daily Low: 1276.2
Previous Weekly High: 1297.15
Previous Weekly Low: 1279.35
Previous Monthly High: 1284.7
Previous Monthly Low: 1221.39
Previous Daily Fibonacci 38.2%: 1287.97
Previous Daily Fibonacci 61.8%: 1283.48
Previous Daily Pivot Point S1: 1281.12
Previous Daily Pivot Point S2: 1269.14
Previous Daily Pivot Point S3: 1262.07
Previous Daily Pivot Point R1: 1300.17
Previous Daily Pivot Point R2: 1307.23
Previous Daily Pivot Point R3: 1319.22