The American currency lost steam ahead of the US opening, helping XAU/USD to bounce towards the $1,745 price zone. However, sellers rejected the advance around the 23.6% retracement of its latest daily rally, measured between $1,616.52 and $1,786.46 at $1,745.46, with the pair falling to fresh intraday lows afterwards. The next Fibonacci support, the 38.2% retracement, comes at $1,720.75.
The XAU/USD daily chart shows that technical indicators have retreated further from the overbought levels touched last week, now heading south but holding within positive levels. At the same time, the 20 SMA heads firmly higher, far below the current level, while also below a directionless 100 SMA.
In the near term, and according to the 4-hour chart, chances are of lower lows. The pair is below a firmly bearish 20 SMA, while the longer moving averages maintain their bullish slopes below the current level. The Momentum indicator consolidates within negative levels, but the RSI indicator accelerated south, currently at around 29.
Support levels: 1,733.00 1,720.75 1,708.30
Resistance levels: 1.745.50 1,758.60 1,771.10