Gold (XAUUSD) trades around its daily opening after meeting sellers around a Fibonacci resistance level, the 38.2% retracement of the $1,729.54/$1,617.12 decline at $1,659.90. At the same time, the pair is holding just above the 22.6% retracement of the same slide at $1,643.60, an immediate support level.
Technical readings in the daily chart skew the risk to the downside. A bearish 20 SMA is currently converging with the aforementioned resistance, while the longer moving averages keep heading south far above the current level. At the same time, technical indicators remain within negative levels, although without clear directional strength.
In the near term, bears also have more chances. Technical indicators rotated south, with the Momentum heading tepidly lower within neutral levels but with the RSI indicator anticipating more declines at around 46. Moving averages head lower, with the 20 SMA converging with the immediate Fibonacci support level. A break below the latter should signal a steeper decline ahead, particularly if the slide is triggered by the US Federal Reserve’s decision.