Gold struggles to regain its traction and trades below $1,940. As FXStreet’s Haresh Menghani notes, XAU/USD bears have the upper hand below $1,960.

Break under $1,895 support would be a fresh trigger for bearish traders

“The post-FOMC positive move faltered near the $1,950 region, which is closely followed by the 38.2% Fibonacci retracement level of the $1,780-$2,070 rally. The latter is pegged near the $1,960 area, which if cleared decisively will set the stage for additional gains. Gold might then accelerate the momentum back towards the key $2,000 psychological mark.”

“Weakness below the 50% Fibo. level, around the $1,925 zone, might find some support near the $1,918-$1,917 region. Some follow-through selling would expose the 61.8% Fibo. level, around the $1,895 area.”

Failure to defend the $1,895 support levels would be seen as a fresh trigger for bearish traders. The next relevant support is pegged near the $1,850 region, below which gold could slide further towards challenging the very important 200-day SMA, currently around the $1,815 region.”

This article was originally published by Fxstreet.com.Read the original article here.

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