- The XAU / USD shows the breakout of a symmetrical triangle on the 1 hour chart.
- The RSI is pointing lower within the bearish zone, allowing for further declines.
- The move to the downside is most compelling amid a host of healthy resistance levels.
The Gold (XAU / USD) Targets Deeper Losses, as the rally in US Treasury yields accelerates during Thursday’s European session.
Despite closing above the $ 1,800 level on Wednesday, bears remain in control amid a technical breakout to the downside on the 1-hour chart.
The price of gold has confirmed the breakout of a symmetrical triangle in said time period after closing below the support of the rising trend line at $ 1,796.
The bearish breakout points to a retest of Wednesday’s low of $ 1,784, below which the target measured at $ 1,770 could be challenged.
The downside bias also gains additional credibility after the price has broken the critical support around $ 1,798 where the 21n 100 and 200 hourly moving averages converge.
Gold 1 hour chart
On the other hand, any pullback could find strong resistance at the aforementioned broken support, now turned into upside resistance at $ 1,797 / 98.
Higher up, the $ 1,800 level could be tested. The confluence of the 50 hourly SMA, the pattern resistance, and the previous month’s low at $ 1,803 would be a tough nut to crack for the XAU bulls.
Gold additional technical levels
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