Gold Weekly Price Analysis – April 6
The bears are gradually increasing their pressure to break down the support level of $1,292 in order to expose the $1,242 support level. Should the Bulls defend the $1,292 price level, then the Gold price will rise again towards $1,353 resistance level.
Resistance levels: $1,353, $1,389, $1,435
Support levels: $1,292, $1,242, $1,181
XAUUSD Long-term trend: Bullish
XAUUSD is bullish on the weekly chart. Exactly the way it was predicted last week; the resistance level at $1,353 did hold and the bull could not push the Gold price to reach the level of $1,353. The XAUUSD price turned back to the support level of $1,292. This made it possible to complete the formation of the right shoulder of the pattern formed on the weekly chart that is called Head and Shoulder pattern.
The bears are gradually increasing their pressure to break down the support level of $1,292 in order to expose the $1,242 support level. Should the Bulls defend the $1,292 price level, then the Gold price will rise again towards $1,353 resistance level. However, the Moving Average Convergence Divergence period 12 with its histogram is flipping to zero levels and the signal lines turning down to indicate sell signal.
XAUUSD Medium-term Trend: Bearish
XAUUSD is bearish on the daily chart. The bearish momentum that penetrated the dynamic support level of 21 periods EMA and 50 periods EMA downside could not continue. The gold price remains at the $1,292 level consolidating since last week after the formation of Head and shoulder pattern. The Bears and the Bulls lost momentum and the price could not rally on the daily chart. Further increase in the Bears’ pressure will make the gold to find its low at $1,242 price level.
The MACD period 12 and its histogram are below zero levels with its signal lines point down to indicate sell signal.
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