- Gold is rising for the second day in a row on Friday.
- Strong support at $ 1,850 remains intact after Monday’s slide.
- Several moving averages reinforce the resistance area near $ 1,900.
After the sharp drop on Monday, the pair XAU / USD It fluctuated in a relatively tight range and struggled to make a decisive move in either direction. However, the pair broke above its consolidation channel on Friday and rose to a four-day high of $ 1,896.90.
Gold technical outlook
The Relative Strength Index (RSI) on the daily chart is currently testing 50, which suggests that the short-term bearish outlook is turning neutral in the wake of Friday’s bounce. However, a set of key moving averages above price shows that buyers may remain reluctant to commit to a prolonged rally.
Both the 50-day and 100-day SMAs are currently near the psychological level of $ 1,900, forming critical resistance in that area. Only a daily close above that level could open the door to additional gains. $ 1,930 (Fibonacci retracement 38.2% of the June-August uptrend) could be seen as the next target on the upside.
Supports, on the other hand, sit at $ 1,874 and $ 1,850 (50% Fibonacci retracement). With a breakout below $ 1,850, sellers could look to take control of the XAU / USD.
Daily chart
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