XAU / USD regains strength, tests $ 1,740 level

  • The XAU / USD reversed its direction after falling towards $ 1,720.
  • Renewed USD weakness is providing a boost to XAU / USD.
  • The next hurdle to the upside is at $ 1,740 before $ 1,745.

The pair XAU / USD It fell to a daily low of $ 1,723 at the start of the European session, but took a 180 degree turn in the last hour. Driven by renewed selling pressure around the dollar after the inflation data, gold surged into positive territory and was last seen gaining 0.3% on the day at $ 1,738.

Gold technical outlook

The Relative Strength Index (RSI) indicator on the four-hour chart rose above 50 with the latest rally, suggesting that bullish momentum is gathering steam. On the upside, the first hurdle is lined up at $ 1,740 (Fibonacci retracement of 23.6% from the March 31-April 8 rally) ahead of $ 1,745 (static level). A daily close above the latter could open the door for further gains towards $ 1,755, where the 50-day SMA is located.

On the other hand, the 50-period SMA acts as the first dynamic support at $ 1,735. Furthermore, strong support appears to have formed at the $ 1,723 – $ 1,727 area (100-period SMA, 200-period SMA, Fibonacci 38.2%). A daily close below that level could attract more sellers and trigger a bearish reversal.

.

You may also like

What to expect from bitcoin this week
Top News
David

What to expect from bitcoin this week

Specialists RBC Crypto Analyzed the situation in the market and appreciated the prospects for the movement of the Bitcoin course