A gold swing area between $1754 $1765 being tested
The price of gold has tumbled lower today as dollar buying and negative technicals push the price lower.
Technically looking at the daily chart, the price fell below its 200 hour moving average last week (green line in the chart above), and the corrective move higher yesterday found sellers against that moving average level.
Today, the prices started to move to the downside side away from that moving average and buyers quickly turned to sellers. The price has moved to a low of $1745.44. That did take the price below a swing area in the $1754-$1765 range. However the price has since rebounded back within that trading range. It will take a shove below it again to push the price further in the downside direction.
The move to the downside also had the pair fall below the 50% midpoint of the range since the March 16 low (that's the range for the 2021 calendar year as well). That level comes in at $1763.77.
Traders will be watching that level as well as a short-term risk/bias level. Stay below the midpoint and sellers are more in control from a technical perspective.
