Gold Trying to Recover

We remained neutral in the previous analysis due to the conflicting technical signals, with activation of long positions depends on confirming the breach of 1886, and from here we may witness a re-test of the previously broken support-into-resistance 1901, posting a high at 1899.

Technically, looking at the 240-minutes chart, we find the 50-day moving average trying to press the price from the top and the pair stable below pivotal resistance 1901, Fib 61.80%, which represents a key to protecting the downside, this contradicts the positive signals coming from the RSI and with the formation of a bullish technical pattern.

Therefore, we will stand on the fence for the second session in a row in order to get a good deal, and we will be waiting for one of the following scenarios: The price breaches the 1901 level, fib 61.80% is a catalyst that enhances the chances of a rally towards 1913 as a first target, followed by 1927.

Activation of short positions depends on witnessing a clear break of the support level of 1890 and puts the price under strong negative pressure to resume the bearish path with initial targets at 1860.

S1: 1877.00	R1: 1901.00
S2: 1863.00	R2: 1913.00
S3: 1852.00	R3: 1927.00