Gold price is looking to extend the downtrend into the third straight day this Wednesday. XAU/USD set for more pain if key $1,805-$1,800 support zone fails, FXStreet’s Dhwani Mehta reports.

Key $1,800 level eyed

“Should the downside gather steam, a sustained break below the critical support at $1,805 will confirm a parallel channel breakdown. The next bearish target for XAU/USD is now envisioned at the flattish 200-DMA at $1,775. Ahead of that the $1,800 round level and $1,790 could test the bullish commitments.”

“Any recovery attempts will need acceptance above the strong support-turned-resistance at $1,830, above which the bearish 21-DMA, now at $1,838, will come into the picture.”