· Path of least resistance remains to the downside for XAU/USD
Short-term technical outlook
From a technical perspective, the metal, for now, seems to have found some support near a short-term ascending trend-line. A subsequent drop below the $1785 area (monthly lows) will reaffirm the near-term bearish bias and pave the way for a further depreciating move towards extending from November 2020 swing lows support, around the $1764 region. The downward trajectory could further get extended towards the $1739-37 horizontal support.
On the flip side, any meaningful recovery attempt beyond the $1800 mark might now be seen as a selling opportunity and runs the risk of fizzling out rather quickly near the $1808-10 region. That said, some follow-through buying might trigger a short-covering move and push the commodity further towards the overnight swing highs, around the $1825-27 supply zone.
Reference: FXStreet
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