The price of gold is falling in early trading on Wednesday. Will the yellow metal recover the critical resistance of the Daily Moving Average at $1,717? FXStreet analyst Dhwani Mehta breaks down the XAUUSD chart.
$1,700 zone could offer strong support
“The 14-day Relative Strength Index (RSI) is still holding above its midline, suggesting that the pullback is likely to be temporary and could offer a good buying opportunity to traders who might have missed the recent rally.”
“A daily close above the critical 100 DMA is needed to trigger further rally towards the October high of $1,730. Immediate resistances, however, are seen at the $1,710 round figure and multi-week highs at $1,717.”
“To the downside, the $1,700 area could offer strong support, below which a sharp drop to the 50-DMA at $1,674 cannot be ruled out. Before that, the previous week’s high at $1,683 could come to the rescue of the bulls.”
Source: Fx Street
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