Gold XAUUSD didn’t even test the 1,680 support before a rebound has set in. But the rebound doesn’t seem to get traction struggling to break the 0.382 retracement at 1,734 and after the release of CPI numbers Gold has been hammered down.
However, even if buyers are coming lifting Gold above the 0.382 retracement at 1,734 the big test will be whether Gold can break the falling trend line and more importantly the 1,766 resistance.
If closing above resistance at 1,766 a move to around 1,800-1,830 is in the cards. 1,830 is the 0.382 Fibo retracement of the past six months bear trend.
However, with the rejection of the 1,734 minor resistance Gold is likely to test the 1,680. A close below can send Gold much lower.
Weekly chart shows that there us no support before around the 0.764 retracement at 1,598. The 200 weekly SMA will provide some support however, but the trend will be down.