XAU / USD may extend its downward correction towards $ 1800

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Last week, gold settled above $ 1,810 and posted small weekly gains. However, FXStreet analyst Eren Sengezer sees a possible correction to $ 1800 as key resistance at $ 1825 remains.

See: Gold Weekly Forecast: Possible correction to $ 1,800 while holding key resistance

XAU / USD may stage a short-term technical correction

“On Thursday, the European Central Bank (ECB) will announce its decision on interest rates and publish the Monetary Policy Statement. However, the ECB has already released its revised policy strategy and the bank is unlikely to offer a new vision of their political perspectives “.

“On Friday, preliminary July PMI manufacturing and services figures from Germany, the euro zone and the United States will be sought for further momentum. Instead of the main figures, investors are likely to pay close attention to the underlying details. on input price pressures “.

“The strong support appears to have formed at $ 1800 (psychological level, 50% Fibonacci retracement from April to June with an uptrend). A daily close below that level could open the door to further losses towards 1790$ (100-day SMA, 20-day SMA). “

“The resistances stand at $ 1825 (38.2% Fibonacci retracement and 200-day SMA), 1834$ (July 15 high, 50-day SMA) and $ 1845 (static level). “

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