The precious metal is facing a strong pullback, the price managed to break the support level at 23.6% and 38.2% Fibonacci retracement and it's very close to the 50% support level at $1,796.
The Bollinger bands are very wide and we expect high volatility for the pair in the short term, the price is currently trading at a very fair price level in reference to the bands, this will allow investors to buy at a lower price in hopes that inflation fears continue in the midterm, creating a new surge for the safe-haven metal.
The relative strength index is at 46%, this will allow the pair to move freely in either direction, we will have to wait and see if the support level at $1,797 is strong enough to hold the drop and revert the current downtrend.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
