After a winning streak of six days, the precious metal finally found a pullback in recent sessions. The price spiked to almost $2,000 in yesterday's trading session but the breakout on the 23.6% Fibonacci retracement could not be completed. The short and long-term moving averages are very close to each other, which has been the case for almost 7 days.
The Bollinger bands are opening up, which will bring higher volatility in the upcoming trading sessions, the pair might find strong resistance at the upper band which is close to $1,990. The pair trades slightly above the Ichimoku cloud, if the price retraces it would likely enter the cloud, which will bring market uncertainty and a possible consolidation phase.
The relative strength index is at 61% which will allow the price to continue moving up for the short term, but once it gets closer to or passes 70% a retracement is almost imminent, although we have seen the precious metal stay overbought for some days in the past. Our parabolic SAR indicator suggests that the price will continue to move upwards.
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