Technical Analysis: Gold sellers flex muscles around $1,800 ahead of key US data
Sustained trading below the 200-SMA and monthly horizontal resistance keep gold sellers hopeful as markets brace for the last data dose ahead of Christmas fever. Even so, a clear upside break of the weekly resistance line, around $1,793, helps the buyers to battle the 200-SMA level surrounding $1,808, a break of which will direct the run-up to the stated resistance zone near $1,814-16. It should be noted that a successful break of $1,816, which is currently out of the view considering downbeat RSI and MACD signals, could recall the bulls targeting the $1,834 hurdle that includes tops marked in July and September. Following that, $1,850 and November’s peak of $1,877 will gain the market’s attention.
On the contrary, a descending trend line from mid-November, around $1,780, may test intraday sellers before directing them to the $1,770 and $1,764 supports. In a case where the gold prices remain weak past $,764, the monthly low of $1,751 and 61.8% Fibonacci Expansion (FE) of the November-December moves, near $1,736, should be watched carefully. Overall, gold bears have a smoother road to travel than the buyers even if the US data surprise traders.