The precious metal sank to its lowest level in almost two years, shortly after, it gained almost 5% in the three previous sessions but found strong resistance at $21.9, which brought the pair back to the $21.3 levels. The general trend continues to be downwards.
The Bollinger bands are closing up, which often signifies a consolidation period, the pair trades closer to the lower band, suggesting that the price is relatively low. As the bands become narrower, volatility is expected to decrease, forcing the pair to move sideways.
The relative strength index is at 34% the recovery has been interrupted, and the pair gets close to an oversold status once again. Our parabolic SAR indicator suggests that the price is likely to move upwards in the short term. We will have to wait and see if the resistance at the 23.6% Fibonacci retracement can be completed in the next few sessions.
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