The precious metal took a hit in today's trading session as it lost the ground it gained on the two previous days, sending back the price to the support level at the 50% Fibonacci retracement at $1,796.
The Bollinger bands are narrow and the pair traded closer to the upper band in previous sessions, suggesting that the price was relatively high which is why it dropped in today's session. Now it is in between the bands but we don't expect it to move much, for now, the bands are starting to open, which will bring higher volatility.
The relative strength index is at 50% a very neutral level that will allow the pair to move with no constraints. We want to wait to see if the support is strong enough to hold the drop in other to make a trading decision.
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.