Gold has extended its rebound toward $1,800. A look at XAU/USD’s technical picture confirms the bullish bias, FXStreet’s Eren Sengezer reports.
Failure to defend $1,792 could trigger additional losses
“The Relative Strength Index (RSI) indicator on the daily chart climbed above 60 on Friday, pointing to a buildup of bullish momentum. Additionally, XAU/USD climbed above the 200-day Simple Moving Average, which is currently located at $1,792.”
“On the upside, $1,800 (psychological level, static level) aligns as initial resistance before $1,830 (Fibonacci 50% retracement of the long-term downtrend) and $1,860 (static level) next.”
“In case buyers fail to defend $1,792, additional losses toward $1,780 (Fibonacci 38.2% retracement) and $1,770 (static level, 20-day SMA) could be witnessed.”