Gold Price Forecast: XAU/USD validates a Falling Wedge formation, more upside likely?

Gold price is extending a three-day recovery. FXStreet’s Dhwani Mehta analyzes XAU/USD technical outlook.

The 21 and 50 DMAs bearish crossover could remain a drag

“Gold price confirmed falling wedge formation on the daily chart after yielding a daily close above the falling trendline resistance at $1,813 on Tuesday. Should the upside break find its footing, XAU/USD could advance further toward the previous week’s high at $1,848, above which the $1,850 psychological level will come into play.”

“However, Gold price could run into strong offers at higher levels, as the 21 and 50-Day Moving Averages bearish crossover could remain a drag.”

“Any retracement could test the initial support at the $1,820 round figure, below which the two-month low of $1,805 will be in focus. The next downside target is seen at the $1,800 threshold.”