Set up Bear pattern
Today’s short -term indications can be followed by a deeper withdrawal. A drop below the low point of today of 2,791 will cause a continuation of the decline and could at least establish a temporary top on today’s high. Furthermore, it would probably lead to a deeper pullback and lower prices. How much lower can still be seen.
There are a few important trend support areas that must be eligible for possible support. The first target would be the 20-day MA, now at 2,717. Because the 20-day line rises, the price level it represents will also rise. In the neighborhood is that advancing average a small rising trend line that can be used together with the 20-day MA for extra guidance if it is approached.
Levels to view as a pullback continues
Further on, the more significance potential support is around the 50-day MA, currently at 2,672. Because it is used to help identify the intermediate trend, it has a greater potential meaning than the 20-day line. It has only recently started leaving a consolidation zone where it has less impact and is less reliable.
Previous potential support levels to view, however, are the small recent swing layer of 2,731, together with the earlier interim Swing High of 2,726 (B). Earlier resistance levels can be supported on the way down and how the price of gold reacts to those price areas can give instructions about changes in supply and demand.
Look for a look in all the economic events of today Economic calendar.