Technical analysis
The Relative Strength Index and the Commodity Channel Index indicators show that gold is heavily oversold after tlast Friday’s major price sell-off.
The daily time frame also shows that a major breakout has taken place from a triangle pattern after the price fell below the $1,790 support level..
What the possible outcomes are
In our most likely scenario, XAUUSD pair will bounce from the $1,740 price area back towards the $1,790 level as the yellow-metal is now oversold.
Alternatively, XAUUSD pair will continue to break to the downside and test towards critical technical support, around the $1,685.
Key levels
Support $1,740 $1,685
Resistance $1,790 $1,830
