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The US dollar surged higher intraday against most currencies, including the British pound, Euro and the Aussie dollar. The main reason for the gain was solid economic releases in the US, which lifted the US dollar across the board. GOLD also declined and traded lower towards the $1170 level where buyers managed to protect the downside. However, we cannot deny the fact that GOLD remains under bearish pressure and more downside is likely in the short term. There is a possibility that the prices might move and correct higher in the near term, but it can only be considered as a selling opportunity.
There is a bearish trend line formed on the hourly chart of GOLD, which stalled upside whenever bulls attempted to take it higher. Recently, GOLD failed around the 38.2% fib retracement level of the last leg from the $1203 high to $1170 low, and traded lower. However, it managed to hold the last low in that situation and currently heading back towards the mentioned fib level. There is a monster resistance around the 61.8% fib level, as the 100 hour moving average is also sitting around the same level. Moreover, the highlighted trend line is the next major hurdle above the 100 hour MA.
If GOLD climbs higher from the current levels, then it might struggle to break the stated resistances. On the downside, the last low of $1170 is major support and a break below would be a bearish call in the short term.
Overall, one might consider selling rallies as long as the price is below the 100 hour MA.