XAU/USD - Bearish Divergence at Resistance Pivot
Gold (XAU/USD) has been rallying since the Fed announcement last week. Remember the Fed raised rates and provided guidance for 2 more rate hikes in 2017, a much expected tone. There was the classic buy-the-rumor-sell-the-news reaction with the USD, which gained ahead of the rate hike, and fell immediately after.
The rally in gold, was mainly due to that USD-reaction. However, the prevailing mode has turned bearish since late February, and I still think there is downside after the recent upswing.
Gold (XAU/USD) 4H Chart
(click to enlarge)
- Price has rebounded from just under 1200 to about 1235.
- Here, we see a support/resistance pivot.
- There will be another resistance pivot around 1245.
- But ,we are already seeing a bearish divergence.
- I would anticipate some selling here that might bring price back to test the 1220 pivot, and possibly push it back towards the March lows just under 1200.