- The XAU / USD is struggling to take advantage of Tuesday’s strong gains.
- The key resistance for gold is at $ 1,720.
- Buyers could look to defend $ 1,700 if the XAU / USD loses traction.
The pair XAU / USD it gained nearly 2% and approached $ 1,715 before entering a consolidation phase on Wednesday. At time of writing, the pair is down 0.2% on the day at $ 1,712.
Gold technical outlook
The Relative Strength Index indicator on the four-hour chart is moving sideways near 50, suggesting that the pair is having a difficult time determining its next short-term direction.
On the upside, $ 1,720 (Fibonacci retracement 23.6% of February-March dip, March 9 high) lines up as a key resistance. Unless XAU / USD manages to make a daily close above that level, sellers could start to dominate the pair’s action. Other hurdles could be seen at $ 1,740 (static level) and $ 1,745 (Fibonacci retracement 38.2%).
Immediate support is at $ 1,700 (psychological level / 20-period SMA on the four-hour chart) ahead of $ 1,680 (March 8 low).
Technical Levels
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