VOT Research Desk
After encountering resistance near $1,780.00 during the Tokyo session, the price of gold (XAUUSD) has fallen to close to the immediate support of $1,770.00.
In an effort to cross the crucial resistance, the precious metal is always feeling selling pressure.
Generally speaking, gold prices have stabilized in the $1,768–1,784 region, and an expansion would be seen following more developments on the Russia–Poland controversy and the publication of the United States Retail Sales data.
Significant offers at high levels have been seen for the precious metal, which might end the four-day winning streak.
The US Dollar Index (DXY) has updated its day’s high to 106.78, and a switch to a pessimistic risk profile today could present an opportunity to test Tuesday’s high at 107.00.
XAU/USD Technical Analysis
On a four-hour period, XAUUSD is progressively falling towards the upward-sloping trend line drawn from the low on November 3 at $1,616.67.
Following a corrective move, gold prices have kissed the 50-period Exponential Moving Average (EMA) around $1.770.50. At $1,756.00, the 100-period EMA is steadily ascending, adding to the upward filters. In the midst of the downturn, the Relative Strength Index (RSI) (14) has moved from the bullish area of 60.00-40.00 to the bearish range of 40.00-60.00.
While a decline in upward velocity cannot be ruled out, this does not indicate a shift in the secular trend. By establishing long positions close to the upward-sloping trend line, investors hope to profit from the correction.
This might put an end to the bulls on the US dollar’s short-term optimism.
