Gold Technical Analysis Update – Week Of February 4th – 8th – 2013
- The XAUUSD chart below shows how the price of gold has oscillated between the 1657 – 1683 levels over the past three trading sessions.
- Price ended the week with a daily range which was 145% of the average over 60 days, after the NFP report brought an element of volatility, but the weekly range contracted to just 73% of the AWR.
- It may take a fresh risk sentiment related driver to break out of this mid-term 1625 – 1700 zone. The S&P 500, often seen as a barometer for risk, has has had the best start to the year since 1997, rallying over 5% in January.
- We note a double swing high pattern has formed just under 1700 – a break above this level would also require a breakout of the descending channel. The failure to break above 1700 may be a contributing factor to this current consolidation phase.
- The 1625 – 35 zone prior support area has technical confluence of an FE100, 61.8% Fibonacci retrace and previous range resistance highs which subsequently gave support on the 4/1/13. This is a key technical zone on any sustained gold downside move.
Gold Technical Analysis – D1 Chart
