XAU/USD Technical Outlook – 17, Jan

The daily chart for the XAU/USD pair shows that technical indicators are barely retreating from extreme overbought readings, far from confirming an interim top. In fact, the Relative Strength Index (RSI) hovers around 72, somehow suggesting bulls are not willing to give up. At the same time, the pair is developing far above its moving averages, with the 20 Simple Moving Average (SMA) heading firmly north and providing dynamic support at around $1,840.40.

The 4-hour chart shows that bulls retain control of the pair. Technical indicators turned flat within positive levels after correcting extreme overbought readings, reflecting the absence of selling interest. At the same time, moving averages head firmly north, far below the current level, with the 20 SMA currently at around $1,899.70.

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