- XAU / USD remains under modest bearish pressure on Wednesday.
- Gold is struggling to regain the $ 1,800 level despite USD weakness.
- The $ 1,780 level could be seen as the next target on the downside.
XAU / USD fell to a two-day low at $ 1,783 on Wednesday, but rebounded and managed to close the day above $ 1,800. However, gold remains on the defensive despite broad selling pressure around the dollar on Thursday, shedding 0.55% on the day at $ 1,795.
Gold technical outlook
The RSI on the 4-hour chart is moving sideways slightly below the 50 level after Wednesday’s dip, showing that XAU / USD is struggling to determine a direction in the near term. Meanwhile, gold continues to move below the 20- and 50-period SMAs, suggesting that the next move is likely to be lower.
On the downside, initial support is at $ 1,790, where the 38.2% Fibonacci retracement of last week’s decline is located. With a break below that level, the XAU / USD could extend the slide towards the next Fibonacci retracement level at $ 1,780.
On the upside, $ 1,800 (psychological level) could be seen as the first resistance ahead of $ 1,803 (61.8% Fibonacci retracement) and $ 1,810 (100-period SMA).
4 hour chart gold
Gold technical levels
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