Gold trades lower. Lowest level since May 6th

Technical Analysis

Author: Greg Michalowski | gold

USD is the strongest currency on the day

The USD is now the strongest of the major currencies and that has the gold sellers in the market.

USD is the strongest currency on the dayLooking at the hourly chart, the technicals have helped the decline as well.  Today at the highs, the 200 hour MA stalled the rally.  Traders were leaning, and sellers kept control.   

Gold tests the May 6 low
The fall has now taken the price to the swing low from May 6th. There area other targets at the April 26th low at $1274.42 and the double bottom at $1266.35.  

What might ruin the bearish run today?

A move back above the $1280.51 (61.8% of the range this month) would be a disappointment for the sellers.  The 50% midpoint at $1284.88 and of course that 200 hour MA (and broken 38.2%) at $1289.25, would be the steps to a more bullish bias.

For now though, the sellers are in control as the dollar marches higher.

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose