XAU/USD Technical Outlook – US PMI ahead

After spotting a symmetrical triangle breakdown on the four-hour chart on Wednesday, Gold price extended the downside and hit the pattern target measured at $1,781. As explained here, the metal did stage a solid comeback, helped by the oversold Relative Strength Index (RSI) conditions.

XAUUSD needs to defend the previous resistance now support of the 50-Simple Moving Average (SMA) at $1,714 for the upside to remain in place. The RSI is now turning lower but holds above the midline, keeping bulls hopeful. The last line of defense for buyers is seen at the 21 DMA of $1,707.

A breach of the latter will reopen the downside towards $1,700 and the multi-months trough of $,1681.

On the flip side, a sustained move above the previous day’s high of $1,720, will revive the recovery momentum. Gold bulls will then aim for the July 18 high of $1,824. The $1,830 round number will be put to test should the upswing gather steam.

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