The precious metal started an aggressive downtrend on April 19th, the pair has lost almost 8% so far, but the price of the commodity could reach new lows for the year. The general trend is downwards, the short and long-term moving average has been left behind, and the gap between the lines is increasing.
The Bollinger bands are wide, and volatility should continue to be high in the short term, the lower band continues expanding, suggesting that the price is likely to continue moving downwards. The lower band could act as a support level in future sessions.
The relative strength index is at 34% which is close to the oversold status; once it gets closer to, or below 30%, we could see a small recovery as investors might see this as a trading opportunity to buy the commodity at a low price. Our parabolic SAR indicator suggests that the price will continue to fall in the short term.
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.