Resistance test can be completed
Because today’s high was characterized by two indicators, this is perhaps the top for the counter-trend rally. It is also a five -day high point. Short-term strength was seen in today’s advance when the 20-day MA was recovered and the day session probably seems to close above the 20-day line, which is $ 2,903. Nevertheless, the larger bull trend breakdown pattern remains dominant.
Although gold can continue to rise and higher dynamic resistance levels can test that are indicated by the trend line, unless there is a daily near the trend line or a rally above the record high, it seems more likely to continue the Bearish correction. However, that cannot happen immediately.
Possible from within week this week
Given the relatively broad trade range of last week, this week’s price range could complete the week within the reach of last week. That would set up an inner week for next week. That is why in daily time frame this week, consolidation could see consolidation above last week of $ 2,833 and under the high today. Support in the short term is at the low point of $ 2,882 and yesterday’s low point of $ 2,855.
50-day support is the key
The 50-day MA, now for $ 2,781, is an important potential support level during a bearish correction. Note that the line continues to rise and is close to the converging with the earlier trend high at $ 2,790. There is no support test for the 50-day line since this early January was recovered. That is why the support must indicate if achieved during the current Bearish Retracement.
Look for a look in all the economic events of today Economic calendar.