XAU/USD is trading back below $1,862 static support signaling further drop. It has moved sideways in the short term but only to capture more bearish energy before moving down. It's trading in the red as the greenback tries to extend its appreciation versus its rivals.
Technically, the gold price is expected to drop towards fresh new lows if it stabilizes below $1,862 former low. The failure to come back at $1,900 psychological level signals strong selling pressure. USDX's further growth could send gold lower.
XAU/USD failed to stabilize above the $1,862 level, another lower low, drop below $1,848 suggests selling as the rate will be expected to approach the next downside targets, obstacles.
The S1 (1,821) and $1,800 are seen as near-term downside targets. It seems that the rebound is over and that the rate will hit new lows soon.
- XAU/USD Trading Tips
Sell a new lower low, bearish closure below the $1,848 level. S1 ($1,821), $1,800, and the S2 ($1,781) could be used as downside targets.
Only another higher high, jump, and close above $1,877 could signal a potential growth and could invalidate a larger drop.
