Gold is recovering, changing hands above $1750. But as FXStreet’s Dhwani Mehta notes, technical setup on the 4H chart casts doubt on the bullish potential.
Focus on central bankers’ speeches, US data
“Gold traders refrain from placing fresh long bets on the metal ahead of the critical US Durable Goods data and a slew of central bankers’ speeches due later in the day. The ECB President Christine Lagarde is scheduled for an appearance, followed by the Fedspeak and BoE Governor Andrew Bailey’s speech.”
“The bearish 21-Simple Moving Average (SMA) at $1760 is challenging the renewed upside. If gold bulls succeed to find a strong foothold above the latter, then the 50-SMA at $1765 could be immediately probed. A fresh upswing will be initiated on a four-hour candlestick closing above the 50-SMA, opening doors towards the 100-SMA at $1783.”
“Rejection at the 21-SMA hurdle could recall the sellers, targeting the $1750 psychological level initially. The next downside target will be then aligned at six-week troughs of $1738, below which the falling trendline support at $1735 would be put to test.”
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