- The XAU / USD is struggling to find direction at the beginning of the week.
- Additional gains are likely if the XAU / USD manages to break above $ 1,760.
- Buyers continue to defend the key support at $ 1,730.
The pair XAU / USD it closed the previous week in positive territory, but appears to have entered a consolidation phase on Monday. At time of writing, gold was virtually unchanged on the day at $ 1,743.
Gold technical outlook
The 50-day SMA continues to act as dynamic resistance at $ 1,760. During Asian trading hours, XAU / USD turned south after failing to break above that level and fell to the $ 1,730 area, where it is 38.2% from the Fibonacci level of the March 31 – April 8 retracement. Furthermore, the 100-period and 200-period SMAs on the four-hour chart, as well as the 20-day SMA, are strengthening that support. As long as buyers continue to defend this level, gold could attempt to retest the 50-day SMA.
On the upside, a daily close above $ 1,760 could open the door for further gains towards $ 1,785 (Fibonacci retracement 38.2% from the January-March downtrend). On the other hand, $ 1,720 (50% Fib retracement of the March 31-April 8 uptrend) could be seen as the next support below $ 1,730.
Meanwhile, the Relative Strength Index (RSI) indicator on the four-hour chart is climbing towards 60, suggesting that the bullish momentum is gathering steam.
Technical levels
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