Gold: Bearish outside-day makes today's close pivotal
- Gold charted a bearish outside-day yesterday on hawkish Fed rate hike.
- A bearish reversal would be confirmed if prices close today below $1,241.
Gold came under pressure on Wednesday after the hawkish Fed rate hike put a strong bid under the greenback.
The yellow metal, which hit a five-month high of $1,258 in the run-up to the FOMC rate decision, fell back to $1,241 after the US central bank signaled it could raise rates two times in 2019, as opposed to the market expectation that rate hikes will be paused in 2019.
Essentially, the Fed left markets behind the curve. The dollar index, therefore, bounced off from the 50-day MA of 96.55 and jumped to a high of 97.10. As a result, gold ran into offers and ended up creating a bearish outside-day candle.
The candlestick pattern indicates that the day began with optimism and ended on a pessimistic note. Hence, it is widely considered an early sign of bearish reversal. That, however, would be confirmed only if the metal ends below $1,241 (yesterday's low) today.
As of writing, the safe haven yellow metal is gently bid at $1,245, possibly due to the slight pullback in the dollar index from the overnight high of 97.10.
Gold Technical Levels
Today Last Price: 1245.16
Today Daily change: 3.1e+2 pips
Today Daily change %: 0.247%
Today Daily Open: 1242.09
Previous Daily SMA20: 1234.92
Previous Daily SMA50: 1227.49
Previous Daily SMA100: 1214.78
Previous Daily SMA200: 1230.55
Previous Daily High: 1258.1
Previous Daily Low: 1241.9
Previous Weekly High: 1250.85
Previous Weekly Low: 1233
Previous Monthly High: 1237.4
Previous Monthly Low: 1196.4
Previous Daily Fibonacci 38.2%: 1248.09
Previous Daily Fibonacci 61.8%: 1251.91
Previous Daily Pivot Point S1: 1236.63
Previous Daily Pivot Point S2: 1231.16
Previous Daily Pivot Point S3: 1220.43
Previous Daily Pivot Point R1: 1252.83
Previous Daily Pivot Point R2: 1263.56
Previous Daily Pivot Point R3: 1269.03