by Nick Simpson, Forex-FX-4X
- The D1 (fig 1) XAUUSD chart below shows the range-bound trading has continued through the end of last week. The failure to reclaim $1,700-per-ounce by the gold bulls has seen a flat market with no clear near term directional bias.
- Any sustained breakout above this range would likewise represent a break above the descending trend line originating from the November swing high area. The (fig 2) H4 chart shows the a triangle consolidation pattern has formed.
- We also note there is a Fibonacci confluence area comprised of a 38.2% and 50% retrace that held price on the last attempt higher around $1690.
- In the event of further gold weakness, on a move under the 200 day SMA and recent range lows, the 1630 area remains as a key technical level with the following elements coinciding: an FE100 expansion,the 61.8% Fib retracement and prior range resistance highs which also gave support on the 4/1/13.
- In related markets, the S&P 500 Index has gained for the sixth consecutive week, experiencing the longest winning streak since August with a 0.60% rally on Friday. Oil prices likewise hit a nine-month high on Friday as robust trade data from China and the US had commodities broadly higher.
- You can find our regular gold analysis updates here.
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