Gold Standstill Over Thin Volatility – Quick Technical Outlook - Forex News by FX Leaders

Gold Standstill Over Thin Volatility – Quick Technical Outlook

Posted Tuesday, May 21, 2019 by
Arslan Butt • 1 min read

Gold prices slipped on Tuesday after reaching a more than two-week low of 1,273 in the Asian session. Well, that’s when we opened a sell signal. The strength in Greenback waned bullion’s safe-haven appeal.

We don’t have much on the fundamental side today, which is why the volatility remains thin. However, the technical outlook is offering a trade. Watch out.

GOLD – XAU/USD – Technical Outlook

Gold is consolidating in a tight trading range of 1,275-1,273 which has been intact since Friday. On Tuesday, the precious metal continues to consolidate around 1,275 support, extended by a horizontal trendline.

We have a series of doji and neutral candles which are suggesting indecision between bulls and bears. Well, it’s also because they don’t have much on the economic calendar to trade.

Whereas, the 50 (Green) and 200 (Yellow) periods moving average stay at1,285, suggesting a bearish bias of traders. On the other hand, the RSI and Stochastic hold under the oversold zone, signaling high odds of a bullish retracement.

Support Resistance
1274.63 1279.97
1271.52 1282.2
1266.18 1287.54
Key Trading Level: 1276.86

The bearish breakout of 1,275 can trigger further sell-off until 1,266 and 1,261 while resistance stays around 1,282 and 1,296 today.

Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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