XAU/USD outlook: Gold extends sharp fall on rising dollar
|GOLD
Spot gold price establishes below $1900 as fresh weakness extends into third straight day and hits six-week low in early Wednesday, pressured by rising dollar on risk aversion over renewed coronavirus crisis.
Bears cracked strong support at $1876 (daily cloud base), close below which would provide fresh negative signal and bring in focus strong support at $1862 (low of pullback from new record high).
Break here is needed to signal deeper correction from $2074 (7 Aug all-time high) and expose pivots at $1842/36 (rising 100DMA / Fibo 38.2% of $1451/$2074 Mar-Aug ascend).
Daily studies maintain strong bearish momentum but stochastic is at the border of oversold zone, which may slow bears for consolidation, however, rapid loss of positive momentum and stochastic / RSI heading south on weekly chart and maintain strong bearish pressure.
Res: 1900; 1906; 1915; 1927
Sup: 1862; 1842; 1836; 1805
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