The weekly timeframe shows price action recently dropped in on Support from $1,898, a level sharing chart space closely with a descending resistance-turned-support level taken from the high of $2,070. Adding weight to this support is the daily timeframe’s 200-day simple moving average at $1,902. This dynamic value, alongside being used for trend identification (it currently indicates the trend remains higher in the longer term for now), often delivers support and resistance when tested (some traders and investors use this value to trade mean-reversion strategies).

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Finally, on the H1 timeframe, I noted the following in recent writing:

Out of the H1 chart, limited support is visible until around $1,900 (not shown on the H1), which conveniently aligns with the 200-day simple moving average on the daily scale and support on the weekly and daily timeframes ($1,898 and $1,895). However, you may also acknowledge that downside momentum has noticeably slowed, compressing between two converging descending lines (drawn from $1,972 and $1,943) to form what is referred to as a falling wedge pattern: a potential bullish reversal formation.

As evident from the H1 space, we have recoiled from $1,900 and are now seeing price attempting to break beyond the upper limit of the falling wedge formation. A decisive close beyond here, in addition to the support seen on the weekly and daily timeframes, would be considered a bullish signal—at least in the short term—and potentially see the yellow metal home in on daily resistance from $1,919.

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