Gold price failed to clear the $1,880 resistance zone and it started a fresh decline against the US Dollar. The price broke the $1,835 support zone and entered into a bearish zone.
The bears were able to push the price below the $1,800 support zone and the 50 hourly simple moving average. The price traded as low as $1,761 and it is now correcting losses.
On the upside, an initial resistance is near the $1,780 level. There is also a key bearish trend line forming with resistance near $1,780 on the hourly chart. The main resistance is now forming near the $1,800 level. On the 1-hour chart, MACD has diverged in favor of the bulls. MACD histograms have produced higher lows, contradicting lower lows on the price chart. That bullish divergence sets the stage for a corrective bounce.
On the downside, an initial support is near the $1,762 level. The next major support is near the $1,750 level, below which the price is likely to extend its decline towards $1,732 on FXOpen.
