Gold Price Analysis: XAU/USD under pressure as daily chart shows bearish divergence

Trend: Bearish Technical levels XAU/USD Overview Today last price 2019.9 Today Daily Change -7.70 Today Daily Change % -0.38 Today daily open 2027.6  |  11/08/2020 01:22
  • Gold is feeling the pull of gravity during Tuesday's Asian trading hours.
  • Gold's daily chart stochastic has diverged in favor of the bears. 
  • RSI continues to report overbought conditions with an above-70 print. 
Gold is trading in the red near $2,017 per ounce at press time, having put in a record high of $2,075 on Aug. 7. 
 
The pullback has confirmed the bearish divergence of the daily chart slow stochastic indicator. A bearish divergence occurs when an indicator prints lower highs against higher highs on price and is widely considered a sign of ebbing of bullish momentum.
 
The 14-day relative strength index (RSI) is also echoing similar sentiment with an above-70 or overbought reading. 
 
The yellow metal risks falling to the ascending 10-day simple moving average (SMA) support located at $2,007. A violation there would expose the psychological support of $2,000. 
 
On the higher side, the hourly chart lower high of $2,049 is the level to beat for the bulls. A break higher would open the doors for a re-test of the record high of $2,075. 
 

Daily chart

Trend: Bearish

Technical levels

 

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