Technical analysis
XAUSUD is vulnerable towards the lower Daily Bollinger Band, around the $1,772 support level, after slipping below the mid-line of the Bollinger Band indicator.
The RSI indicator on the daily time frame is bearish and has moved below 50. The overall price trend is still bearish as the yellow-metal trades below its 200-day moving average.
What the possible outcomes are
In our most likely scenario, the XAUUSD pair will decline towards the $1,772 support area and then continue to drift towards the $1,750 level as the technical outlook remains very weak.
Alternatively, XAUUSD could find strong buying interest around the $1,772 support area and start to rally back towards its trend defining 200-day moving average.
Key levels
Support $1,772 $1,750
Resistance $1,800 $1,820
