Technical analysis
The price supported by MA (120)
The Stochastic indicates a possible correction upward.
What the possible outcomes are
Gold had been caught between mixed signals from Fed officials before the breakout on Monday. Nevertheless, the yellow metal is under pressure ahead of this week’s Jackson Hole Federal Reserve symposium.
In our most likely scenario, XAUUSD may challenge the first resistance level of 1,795.
If the price passes the initial resistance level, it could test the next higher at 1,800 and 1,806.
Contrarily, the pair may fail to break the first resistance level and retreat towards 1,791.
If the pair falls below the first support level, we can expect a downtrend towards 1,783 and 1,778.
Key levels
Support 1,791 1,783 1,778
Resistance 1,795 1,800 1,806
