Detailed FX Market Outlook and Analysis

Gold Daily Analysis

Gold finally closed below the $1800 mark yesterday and is currently trading at $1793 ahead of the European session. The intraday support levels are at $1787 and $1779. The near-term resistance areas are at $1803 and $1814.

On the intraday scale, the current price is moving near the SMA-50 support line which is at $1788. A likely breach below the SMA-50 will help bears extend the downside towards $1867. The SMA-14 resistance line is at $1837 while the yellow metal is now keeping below the mid-band which is at $1822. The RSI is at 52 and appears flat. Currently, the SMA-50 is likely to act as a strong support area and a breach below this area is needed for an extended downside. Failing to achieve that the Gold is likely to trade within a narrow range with a limited upside. Based on the expected upcoming narrow range and with limited upside, selling entry is ideal on small rallies towards $1800 with a target of $1790 and a stop-loss at $18011.

The target can be extended provided the yellow metal closes below the $1788 mark on the 4-hourly chart.

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