Home Forex XAU/USD continues to paint a negative picture – Credit Suisse

XAU/USD continues to paint a negative picture – Credit Suisse

by SuperiorInvest

Gold below $1,691/76 confirmed a big double top. Credit Suisse strategists have therefore changed their medium-term technical view on XAU/USD to negative.

Only a convincing break above $1,732 would ease the pressure

“Gold recently broke below its 2-year lows and 200-week moving average at $1,691/76, marking the formation of a major ‘double top’, which is why we have changed our medium-term technical view on gold to negative.”

“We expect further deterioration from here, with support initially seen at $1,618/16. A close below would then clear the way for a 50% retracement of the entire 2015-2020 rally to $1,560, a sustained breakout that would open the door for an extension of the decline into late 2019 and the 2020 price lows as well as the 61.8% retracement to $1,451/40.”

“Conversely, only a convincing break above the 55-day moving average, currently at $1,732, would ease pressure on the precious metal, with further resistance at the even more important 200-day moving average, currently at $1,830.”

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