Gold Price rebounds to test the critical barrier at $1,842 yet again. As FXStreet’s Dhwanie Mehta notes, XAUUSD faces a wall of resistance on road to recovery.
Bulls could face a hard time on the road to recovery
“Markets now look forward to the US Durable Goods Orders data with a downbeat print likely to underpin the buck’s corrective downside, which could render gold-positive.”
“A sustained move above the short-tern critical 21-Daily Moving Average (DMA) resistance at $1,842 and the horizontal 200 DMA, now at $1,845 will be needed to confirm any meaningful recovery. Further up, bulls will look to reclaim the $1,850 psychological level. Powerful hurdle then awaits at $1,858, which is the confluence of the May 16, 17 highs and bearish 50 DMA.”
“If sellers regain control, the daily low at $1,827 could offer initial support, below which Friday’s low of $1,1817 will be retested. The next downside target is envisioned at the June 15 low of $1,808, followed by the critical $1,800 threshold.”
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