Gold dips on the stronger dollar
Move above topside channel trend line failed
The price of gold is trading off highs but is still higher on the day.
The current price is at $1347 up above $4.55. The high reached $1358.26. The low for the day reached $1341.93.
Technically, the pair moved above a topside trend line earlier in the day at $1354.21, but failed on the back of a stronger dollar post retail sales data. The price has since moved below the June 7 swing high at $1348.31. The June 5th swing high at $1344.16 is the next target, followed by the lower channel trend line at $1340.69. Falling below those levels, will have traders eyeing the 100 and 200 hour MAs at $1334.67 and $1333.37 (and moving higher). ON Wednesday, the price moved above the 100 hour MA (blue line) and started to base against the level before moving higher yesterday and into today.
Taking a broader look at the daily chart below, the price high today moved briefly above the swing high from September 2017 (at $1357.61 - the high from April 2018 reached $1358.26). That level and the double tops at the $1366.15 are key. Stay below and it is just another top (6 swing highs are in that ceiling area (see red numbered circles).
Right now with the failed break of the trend line on the hourly and the stall against the lower end of the swing levels on the daily, the sellers are trying to make a play and take more control from the buyers.
What would spoil that run?
It will take a move back above the broken trend line on the hourly at $1354.21 to turn the tide back around to the bullish side.