XAU/USD could test $1,900 if confluence
Gold price extended its five-day losing streak and hit fresh one-week lows at $1,915, having tested the confluence support of the 21- and 200-day Moving Average (DMA) at $1,916.
Gold buyers currently defending the latter despite a bearish 14-day Relative Strength Index (RSI). The leading indicator suggests that the downside-potential remains intact in Gold price.
Therefore, a firm break below the said confluence support is needed on a daily closing basis to extend the downtrend toward the initial demand area just above the $1,904 aligns.
The $1,900 threshold will then challange bullish commitments, below which a test of the multi-month low $1,885 will be inevitable.
Alternatively, the Gold price will need to recapture the 50 DMA support-turned-resistance at $1,932 on a daily closing basis to make another run toward the 100 DMA hurdle at $1,951.
Further up, the static resistance of $1,970 and the July 27 high of $1,982 will challange the Gold price recovery.
Gold buyers currently defending the latter despite a bearish 14-day Relative Strength Index (RSI). The leading indicator suggests that the downside-potential remains intact in Gold price.
Therefore, a firm break below the said confluence support is needed on a daily closing basis to extend the downtrend toward the initial demand area just above the $1,904 aligns.
The $1,900 threshold will then challange bullish commitments, below which a test of the multi-month low $1,885 will be inevitable.
Alternatively, the Gold price will need to recapture the 50 DMA support-turned-resistance at $1,932 on a daily closing basis to make another run toward the 100 DMA hurdle at $1,951.
Further up, the static resistance of $1,970 and the July 27 high of $1,982 will challange the Gold price recovery.
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