GOLD and the key Fibonacci level

XAUUSD, Daily, H4 & H1

Gold breached the 61.8 Fibonacci level at 1286.00 zone, last Friday (January 18), and has been unable to close above this level so far this week. The Gold price has continued to trade below this key level, re-testing it briefly on Wednesday (January 23) but also trading as low as 1276.60 on Monday and Thursday.

The daily chart has Support at 1275.00 (lower Bollinger Band) and 1262.00 (confluence of the 50.0 Fibonacci level, 50-day Exponential Moving Average and trend line support from the November 2018 low) and 1250.00 (200-day Exponential Moving Average). Key resistance remains the 1286.00 zone, 1295.00 (the recent cluster of January highs) and the psychological 1300.00.

Today the H4 has broken out of the bearish triangle it was forming all week but remains capped at 1285.10 (R1). Support appears at the pivot and trend-line cross (1280.80), 1279.50 and S1 at 1276.85.

The H1 has rallied this morning from overnight lows at 1279.80, to 1285.05, the 200-period Exponential Moving Average and R1 zone. The Crossing EMA strategy triggered long at 05:00 this morning at 1281.69, with T1 at 1283.67 and T2 1286.60. The initial stop loss at 1279.70 has now been raised to the entry at 1281.70, locking in T1 gains and also utilizing the 20-period moving average.

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Stuart Cowell

Head Market Analyst


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