XAUUSD
Gold fails to pierce descending trendline.
Encounters strong support at 200-dayu SMA.
Is bullion headed for a re-test of the crucial barrier?
Gold experienced some losses after its advance got rejected at tyhe downward slopping line that connects its recent lower highs. However, the 200-day simple moving average (SMA) capped the pair's decline, with the short-term oscillators pointing to more gains in the near term.
If the price attempts to move higher, immediate resistance could be found at the May low of 1,932, which overlaps with the 50-day SMA. Conquering this barricade, the bulls could propel the price above the descending trendline before the February peak of 1959 gets tested. Further advances may then cease at the July high of 1,987.
Alternatively, should bullion reverse back lower, the recent support of 1,915 could acts as the first line of defense. A break below that zone might pave the way for the June low of 1,893. Even lower, the five month bottom of 1,884 may provide downside protection.