Gold is off around 1% today and is testing the 38.2% of the move up from the October lows. Earlier today, the pair made a break below the 100 hour MA (blue line) and trend line support. The 200 hour MA (green line) was also breached in the sharp fall today.
Gold falls to 38.2 support level.
The 38.2% level comes in at 1227.55 and the price low has extended to 1227.19. The current price is back above the 38.2% level at 1.228.67. Another break of the 38.2% should solicit more selling but for the time being the support holds the line.
Looking at the 5 minute chart, the trend move lower has accelerated the trend (moved below the channel support). The risk should be against the underside of the broken trend line at 1229.80. Other resistance at 1230-1231.63 where the 38.2-50% of the last trend lower is found. If sellers are loving the push lower, this area should hold. The buyers are the ones feeling the pain on this trend move lower.
The trend move lower accelerating now. Risk is the underside of the trend line up to the 50% at 1231.63.
