Gold is starting to struggle above the $1,800 level, following the early-week recovery back towards the technically important $1,815 level. The daily time frame shows that an extremely large head and shoulders pattern, with a $200.00 downside projection, is starting to form. Weakness below the $1,760 support level is currently required to activate the bearish price pattern.
XAUUSD is only bullish while trading above the $1,800 level, key resistance is found at the $1,815 and the $1,825 levels.
If XAUUSD trades below the $1,800 level, sellers may test the $1,775 and $1,760 support levels.