The precious metal continues retracing, it managed to break three support levels at our 23.6%, 32.8%, and 50% Fibonacci retracement, although the last one has not been completed. The pair lost 6.3% in the last five trading sessions.
The Bollinger bands are closing up indicating that volatility could start to decay in the upcoming sessions, the pair trades in between the bands, suggesting that the price is at a fair level, if the price continues falling and manages to complete the breakout on the 50% Fibonacci Retracement we would have to start considering a trend reversal, we would have to wait and see how strong that support level is.
The relative strength index is at 50%, the lowest in more than a month, this will allow the price to move freely in either direction. The price trades below the short-term moving average, which is often a good indicator of a downward trend. Our parabolic SAR indicator suggests that the price will continue falling in the short term.
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