- Gold lost its traction after making a solid rally.
- It appears that significant resistance has formed around 1,760.
- RSI on H4 remains at contact distance from oversold territory.
The pair XAU / USD He started the new week on a firm footing and experienced a strong rebound during the first half of the day. However, the pair struggled to preserve its bullish momentum in the US session and erased a large chunk of its daily gains. At time of writing, XAU / USD was posting small daily losses of $ 1,733.
Gold technical outlook
On the four-hour chart, gold appears to have reversed its course near $ 1,760, where it is located the 50% retracement of the Fibonacci level of the Thursday-Friday slide. Currently, the price remains below the 23.6% Fib retracement at $ 1,738 and the next target could be seen at $ 1,727 (Friday’s close level) and $ 1,717 (multi-month low).
However, the Relative Strength Index (RSI) indicator on the same chart remains within a contact distance of 30, suggesting that sellers might choose not to wait for another correction before the next stage down.
On the upside, $ 1,760 lines up as the next major hurdle ahead of the $ 1,770 (Fibonacci 61.8% retracement) and $ 1,780 (50 SMA).
Technical levels
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