- Gold stops rebounding amid a bearish crossover on the 1 hour chart.
- The RSI on the 1 hour chart has turned flat within the bearish zone.
- A test of the key support at $ 1,848 is on the table.
After failing to find acceptance above the $ 1,890 region during the European session on Tuesday, gold (XAU / USD) has halted its recovery from Monday’s six-week low of $ 1,850.
The latest turn down can be attributed to a bearish crossover seen on the 1 hour chart. The 50 hour moving average has crossed lower to the 21 hour moving average, which warrants some caution in the rebound of the precious metal.
The RSI on the 1-hour chart has turned flat and remains in bearish territory, adding credibility to the waning momentum of recovery.
Therefore, the resistance of the 21-hour SMA, now turned into support at $ 1,872, could offer immediate support, below which key support at $ 1,850-49 could be put at risk. That level is the confluence of the low of November 9 and the low of September 28.
On the other hand, a climb back above the $ 1,900 level is needed to reignite the rally. A break above this level could target the horizontal resistance of the 200 hourly SMA at $ 1,902.
Gold 1 hour chart
Gold technical levels
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Credits: Forex Street
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