August 23, 2022 14:53:43
The gold has been trading in a short-term downside trend. The precious metal renewed August 2020 highs in March at $2,070.28. However, since then the price has depreciated nearly to the swing lows of $1,680.
On the daily chart, the price traded in a rising wedge formation since July 21 and tested the critical supported-turned-resistance level near $1,809. As soon, the yellow metal retreated sharply and made the low of $1,727.79 in the previous trading session.
But, a spike in buy order amid oversold momentum oscillator XAU/USD bounced back to the $1,750 level.
On the 4-hour chart, the XAU/USD pair faced the upside barricade at the bearish trend line that extends from the highs of $1,802. Further, the selling is amplified after it slipped below the critical 20-day and 50-day exponential moving average crossover since August 17.
The bulls made failed attempt to break above the descending trend line, indicating the presence of sellers.
But, a consolidation near the $1,730 since yesterday makes bulls hopeful of a pullback recovery. A renewed buying pressure pushed the price toward the critical $1,750 mark. The formation of a big green candlestick indicates the buying near the lower levels extending the consolidation.
The price moved above the 20-day EMA, with strong buying momentum.
The RSI(14) bounced backed from the oversold zone, indicating a pullback in the price.
We expect the price could move toward $1,760 followed by the high of August 17 at $1,782.33.
On the other side of the coin, a fall below $1,730 would open the gates for the lower level. In that case, $1,700 could be a possibility.
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