Gold is moving in consolidation- Economic Data on Focus

Gold Technical Analysis

The H4 Technical analysis of Gold suggests that the prices are currently hovering around the 23.6% Fibonacci retracement at $1962. There is a recent pullback from the 38.2% Fibonacci Retracement Level at $1932 (calculated from the low of $1808 on 28 February to a high of $2009 on 20 March). There is also a Symmetrical Triangle Pattern forming, meaning prices can break out on either side. However, the moving average crossover between 20-Period Simple Moving Average and 50-Period SMA is suggesting a possible bearish pressure ahead.

Meanwhile, the technical indicators are all giving neutral signals. The Moving Average Convergence & Divergence (MACD) has been moving at zero line for the past two days. Furthermore, the Relative Strength Index (RSI) and Stochastic Oscillator are both hovering at the mid-level.

Given the current market situation, it is wise to wait for indicators to provide any direction, as the market can move on either side. The upcoming economic indicators from the US docket might give some indication in the American Trading session. If the gold prices move to the upside, the initial resistance will be seen at the $1972 level. Any break above this level would push the prices further to the $1986 level and next towards $1994.

On the downside, the initial support is provided by the 23.6% Fibonacci retracement at $1962. Any break below this level could increase the selling pressure in the market and drag gold prices down to $1945. From here, the next support will be seen in 1932, the same level where the gold prices rebounded previously (38.6% Fibonacci retracement).