Gold shaved off the early gains and fell nearly $20 from the highest point of the day to settle Monday in the red at $1,823. Can XAUUSD bulls defend the critical $1,820 support? FXStreet’s Dhwani Mehta reports.
The path of least resistance remains to the downside in the near term
“Gold bulls are testing the bearish commitments at the critical rising trendline support at $1,820. If the latter is cracked on a daily closing basis, then it would confirm a downside break from a two-week-old pennant formation. A fresh downtrend will kick in, with sellers targeting the $1,800 mark. Ahead of that Friday’s low of $1,1817 and the June 15 low of $1,808 could help limit the decline.”
“Bulls need a sustained move above the $1,840 supply zone, which is the intersection of the short-tern critical 21-Daily Moving Average (DMA) and the falling trendline (triangle) resistance. The next hurdle for buyers is seen at the mildly bullish 200 DMA at $1,845.”
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