The precious metal is now on a general downwards trend as the price managed to break the support level from our 50% Fibonacci retracement. The pair showed some signs of recovery in mid-April but was not able to hold on to those gains, the short and long-term moving averages crossed on April 19th and the pair continues losing ground since then reaching its lowest level since February 16th.
The Bollinger bands are wide and almost symmetrical, volatility should be higher in the upcoming trading sessions, the pair trades below the lower band, suggesting that the price is relatively low. Traders might see this as an opportunity to enter the market at a low price which is likely to push the price upwards. The resistance level is at $1,888 on our 23.6% Fibonacci retracement.
The relative strength index is at 34% which will not allow Gold to sink much more before we see the price bounce a bit. Our parabolic SAR indicator suggests that the price will continue to move downwards in the short term.
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