#XAUUSD @ 171902 rises more than $10 from monthly lows, Pivot Orderbook analysis

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE and login below to read further [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• XAU/USD rises more than $10 from monthly lows.
• US yields retreat after ADP data, DXY turns negative.
• Stocks in Wall Street fail to hold to gains.

The pair currently trades last at 1719.02.

The previous day high was 1740.6 while the previous day low was 1721.21. The daily 38.2% Fib levels comes at 1728.62, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1733.19, expected to provide resistance.

Gold prices are modestly down on Wednesday but off lows. During the American session, XAU/USD rebounded from the one-month low at $1,709 and rose to $1,723. It is hovering around $1,720.

The rebound in gold is preventing a daily close under $1,715 which would be a negative technical development suggesting more losses ahead, targeting $1,700. Below, the next level to watch is the July low at $,1680. The immediate resistance on the upside is located at $1,725; above the bearish pressure would ease.

US yields are now falling on Wednesday. Following the August ADP employment report, the demand for Treasuries rose. The employment numbers came in below expectations with the private sector adding 132K jobs versus the 288K of market consensus. On Thursday the ISM Manufacturing is due and on Friday, the Non-farm payroll (consensus: 300K).

The US 10-year yield peaked at 3.16%, the highest level in two months and then pulled back to 3.10%; the 2-year yield retreat from the highest since 2007 at 3.49% to 3.43%. The decline in yields weakened the greenback, helping XAUUSD. The US Dollar Index falls 0.35% on Wednesday and is back under 108.50. The DXY continues to move sideways, holding between 108.00 and 109.00.

Despite the move lower in yields, the doors for a 75 basis points rate hike from the Federal Reserve are still open. Also, despite the rebound, the primary trend in XAU/USD is still bearish.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1720.33 at the time of writing. Pair opened at 1724.0 and is trading with a change of -0.21 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1765.83, 50 SMA 1761.6, 100 SMA @ 1815.76 and 200 SMA @ 1836.44.

The previous day high was 1740.6 while the previous day low was 1721.21. The daily 38.2% Fib levels comes at 1728.62, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1733.19, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1716.61, 1709.21, 1697.22
• Pivot resistance is noted at 1736.0, 1747.99, 1755.39

[/s2If]
Join Our Telegram Group