Safe-haven assets took a hit Tuesday amid upbeat market sentiment, sending bullion to lows at 1641.7, down 1.82% on the day. Technically, H4 price has the unit fading a 38.2% Fibonacci retracement at 1649.9, after dipping lower from Quasimodo resistance at 1694.8. A rotation lower, one that overwhelms 1649.9, could lead to an approach forming to March and February’s opening levels at 1591.7 and 1593.0, respectively. With respect to the relative strength index (RSI) we’re seen trading slightly beneath 50.00 right now, suggesting the bears retain control.
Weekly price, after attempting to hold north of support at 1667.3, is seen dipping its toe in waters south of the said support, suggesting we could be heading for trend line support, taken from the low 1269.6. Resistance on the daily timeframe at 1687.4 remains in play. Continued downside from here has the 1563.1 February 28 low in sight, followed closely by support at 1550.3.
Weekly support failing to offer much of a ‘floor’, as well as daily price navigating lower ground south of resistance at 1687.4, may see the current H4 support at 1649.9 (38.2% Fibonacci support) give way today and highlight bearish scenarios, such as a retest motion at 1649.9 following a break lower (black arrows), to 1590.0ish.
Disclaimer: The information contained in this material is intended for general advice only.