Gold prolonged this week's bearish trend and continued losing ground for the fifth successive day on Friday. As FXStreet’s Haresh Menghani notes, bearish traders await a sustained break below $1,800.
The $1,815-$1,817 region seems to act as immediate strong resistance
“Sustained weakness below the $1,800 handle will reaffirm the near-term bias and pave the way for additional losses. Gold might then turn vulnerable to challenge the YTD low, around the $1,780 region touched in January. The downward trajectory could further get extended towards the next relevant support near the $1,755-$1,750 zone.”
“The $1,815-$1,817 region now seems to act as immediate strong resistance. Any subsequent move up might still be seen as a selling opportunity near the $1,833-$1,835 area. This, in turn, should continue to cap the XAUUSD near the 200-DMA. The latter, currently around the $1,845 zone, would act as a key pivotal point, which if cleared decisively will negate any near-term bearish bias and trigger a near-term short-covering move.”
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