Gold remains vulnerable to further selling as the bounces in the yellow-metal are getting weaker and price action remains bearish. A bearish head and shoulders pattern with $200.00 downside projection remains in place while gold trades under the $1,760 level. Higher time frame analysis also shows that gold could test towards the bottom of a large falling price channel, around the $1,670 area.
XAUUSD is only bullish while trading above the $1,760 level, key resistance is found at the $1,770 and the $1,780 levels.
If XAUUSD trades below the $1,760 level, sellers may test the $1,700 and $1,670 support levels.
