XAUUSD’s technical picture suggests that the bullish bias stays intact

  • November 18, 2022

Gold price struggled to build on the previous week’s impressive gains. XAUUSD needs to clear $1,780 to stretch higher, FXStreet’s Eren Sengezer reports.

200-day SMA at $1,800 aligns as significant resistance 

“The Relative Strength Index (RSI) indicator on the daily chart retreated modestly after having climbed above 70 earlier in the week, suggesting that the latest decline is a technical correction rather than the beginning of a bearish trend.”

“On the upside, $1,780 (Fibonacci 38.2% retracement of the March-November downtrend) aligns as initial resistance. With a daily close above that level, XAUUSD is likely to face strong resistance at $1,800 (200-day SMA) before targeting $1,830 (Fibonacci 50% retracement).”

“Interim support seems to have formed at $1,750. In case XAUUSD falls below that level and starts using that level as resistance, it could extend its downward correction toward $1,720 (100-day SMA, Fibonacci 23.6% retracement) and $1,700 (psychological level, 20-day SMA).”