Technical analysis
XAUSUD has a neutral bias as the four-hour time frame is showing both an inverted head and shoulders pattern and a head and shoulders pattern have formed.
The MACD indicator shows that bearish divergence has formed around the $1,780 area. However, the overall price trend remains unclear until the $1,830 to $1,746 price range is broken.
What the possible outcomes are
In our most likely scenario, the XAUUSD pair will eventually fall towards the $1,785 support area and then stage a recovery back towards the $1,830 level.
Alternatively, XAUUSD could break under the $1,785 support level and quickly fall towards the $1,746 level.
Key levels
Support $1,785 $1,746
Resistance $1,830 $1,845
