Gold ticked higher on Monday but stayed pinned near a multi-week low, with daily chart studies still fully bearish. A break below $4120 and $4100 would open the door to $4000, while only a sustained break above the $4211 trendline would ease the downside pressure.
Gold edged higher on Monday, helped by fading expectations for a Fed rate hike in October, though attempts to recover Friday's post-NFP losses stayed limited so far.
The metal holds on the lower side of a near-term consolidation range, above a new multi-week low contained by the Fibonacci 76.4% retracement of the $3942/$4697 range, with upticks so far limited below trendline resistance. That pattern signals the larger downtrend remains in play.
Daily studies remain in a full bearish configuration that for now favors bearish continuation once the current consolidation phase ends. A break of $4120 and the $4100 round figure would confirm the negative signal and unmask key $4000 support.
Alternatively, a sustained break of the bear trendline at $4211 would ease the downside pressure, while a lift above the $4225 congestion top would be needed to confirm an initial reversal signal and shift the near-term focus higher.
Resistance stands at 4170, 4211, 4225 and 4274; support sits at 4120, 4100, 4021 and 4000.
Source: ActionForex
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