- Gold under pressure as the US dollar reverses
- Ascending triangle breakdown seen on the hourly chart.
- Hourly RSI plays with the oversold territory, attention shifts to Powell.
Gold tested and rejected $1950 on several occasions on Monday before selling sharply lower losing almost $10 in an hour.
The US Dollar rebound is mainly responsible for Gold’s move lower as risk appetite waned and risk aversion dominated over rising covid fears. Investors are also preferring to hold the US Dollar ahead of the Federal Reserve Chair Jerome Powell’s speech later today.
In the near term, Gold broke ascending trendline support at $1945.58 last hour, confirming an ascending triangle breakdown on the hourly sticks.
The horizontal 100-hourly Simple Moving Average (HMA) at $1954 offered strong resistance.
Gold trades below all its major HMAs and looks set toto test the pattern target at $1915.Prior to that level, last $1932.88 (last Thursday’s low)will likely test the bears’ commitment.
The hourly Relative Strength Index (RSI), is flirting with oversold territory, which indicates that here could be more downside to come
Regaining the $1950 is critical to negate the bearish trend and reviving the bulls. The 21, 50 and 200-HMAs are aligned around the confluence area.
However, the recovery will gain momentum only on following a strong move through the 100 HMA
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