XAU/USD Technical Overview – Consolidation phase at $1700 level

The technical chart shows that gold remains in selling zone as price is sustaining near the level of $1700 and on short term time frame forming descending triangle formation. The Relative Strength Index (RSI) indicator on the daily chart stayed below 30 for the 15th straight trading day on Wednesday. The range-bound price action might still be categorized as a bearish consolidation phase. This, in turn, suggests that the near-term bearish trend might still be far from being over and that the risks remain skewed to the downside. Hence, any positive move beyond the $1,725-$1,726 immediate resistance could be seen as a selling opportunity. On the flip side, the $1,700 region, nearly last week’s swing low, might continue to act as immediate support. A convincing break below would make the XAUUSD vulnerable and pave the way for a slide towards the September 2021 low, around the $1,787-$1,786 region. Gold price could then extend the downward trajectory and eventually drop to test the 2021 yearly low, near the $1,677-$1,676 area.

Resistance Level – $1725 followed by$1750

Support Level – $1700 followed by $1680


RSI – On daily chart trading  below 30

MA – Taking resistance of 50 days EMA on daily chart   

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