The Precious metal has been on a downtrend for the last 13 trading sessions. Over the previous six sessions, the pair moved laterally, indicating market uncertainty.
The short and long-term moving averages crossed, and now the general downtrend is downwards. The price broke the 50% Fibonacci Retracement which strengthens this signal; the pair briefly broke the 61.8% retracement as well but came back above this level very fast.
The parabolic SAR indicator also suggests that the downtrend will continue. The price trades slightly below the Ichimoku cloud, which is another short signal.
The Bollinger bands are wide and now pointing down, price trades above the lower band; hence we cannot consider that the price is relatively low. The Relative Strength Index is currently at 34%, which is very close to an oversold status. The pair will likely continue falling until the RSI is below 30%; this will likely incentivize traders to start closing their short positions.
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