- XAU / USD corrects from the highs of the Asian session.
- Further weakness is expected if it falls below $ 1,780.
- Momentum oscillators at overbought levels warrant bullish caution.
Gold prices are moving lower at the start of the European session on Tuesday, returning some of the gains from the previous day and looking to extend the pullback from the Asian session high of $ 1,793. At the time of writing, the XAU / USD is trading at $ 1,785, losing 0.45% on the day.
On the 4-hour chart, gold has faced rejection near the highs of $ 1,800 and forms a reversal pattern in a critical resistance zone, signifying a change in the prevailing trend. The selling has intensified as soon as the price has fallen below the $ 1,788 level.
Looking down, the XAU / USD bears will first target the horizontal support zone of $ 1,780 and then target the previous resistance of $ 1,775 now converted into a support area. Lower, the price could retest Monday’s low of $ 1,767.
However, the MACD indicator is above the midline with bullish retracement momentum. Any rally in the MACD will point to a test of the $ 1,790 level, followed by Monday’s high of $ 1,798. It would not be an exaggeration to say that, above $ 1,800, the next will be the February 23 high of $ 1,816.
4 hour chart gold
Gold technical levels
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