- XAU / USD fluctuates in a tight range for the second day in a row.
- The 200-day SMA lines up as a key support near $ 1,850.
- Buyers could show interest above $ 1,870.
The pair XAU / USD it closed the first day of the week virtually unchanged at $ 1,855 and appears to be struggling to make a decisive move in either direction on Tuesday. At time of writing, the pair was posting small daily losses at $ 1,854.
Technical perspective of the XAU / USD
The Relative Strength Index (RSI) indicator on the daily chart remains below 50 for the second day in a row on Tuesday, suggesting that bullish momentum is struggling to build. However, the 200-day SMA, currently at $ 1,850, continues to act as a key support and sellers may want to wait to see a daily close below that level before dragging gold lower. Below $ 1,850, $ 1,845 (Fibonacci retracement of the 61.8% December rally) could be seen as the next support before $ 1,837 (January 22 low).
On the other hand, the 50-day SMA is the initial hurdle at $ 1,858 before $ 1,870 (daily high / Fibonacci retracement of 50%). A convincing move past the last resistance could help the XAU / USD target $ 1,880 (100-day SMA)
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