Gold price is fading its stellar recovery this Thursday. For how long can XAUUSD defend $1,700? FXStreet’s Dhwani Mehta analyzes the pair’s technical picture.
There is room for the additional downside
“The bullion confirmed a bear flag formation on the daily timeframe after closing below the rising trendline support of $1,733 on Tuesday. This has paved the way for a test of the $1,700 mark should Wednesday’s low of $1,707 yield on a sustained basis. The immediate support, however, is seen at $1,720 the figure.”
“A sustained break above the daily highs of $1,737 will kick in a fresh upswing towards the $1,750 psychological level. Ahead of that, the bear flag support now turned resistance at $1,743 could challenge the road to recovery in the near term.”