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XAUUSD Bears Remain in Control

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XAUUSD has witnessed a choppy descent since hitting record highs in the midst of the 2020 pandemic. The continuous descending channel from the said period has seen prices tested at the psychological $1800 level.

The recent bullish divergence has seen hopes of a revival to the commodity, however with prices bouncing off the lower border of the Ichimoku cloud, it seems that the bias remains firmly to the downside.

With candlesticks hovering at the median regression, we now await further clues on the oscillators to the next direction. A breach of the cloud will be an important sign of an upside bias. However, for the moment, a move back to $1800 seems more likely.

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A short-term intraday outlook looks at an attempt to push higher above the $1820 region. A recent bullish divergence could boost this sentiment, as prices looks for cloud engulfment.

A bounce at the 50% of the 1784.68/1855.49 upside Fibonacci leg could offer some support to the yellow metal. A hold at the specified level could move prices to the confluence of the top border of the cloud and the 38.2% level.

Monthly highs could then come into fruition, as the target of $1850 would be tested as gold looks to gain some momentum towards the upside.

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