The gold market continues to see a downward move, especially with the 50-Day EMA above. goldprice goldpricetoday goldtrade
At the same time, the European Central Bank brought interest rates up to 2%, and although that was expected, it puts a little bit of upward pressure on the Euro, and therefore downward pressure on the US dollar.above.
It causes a little bit of dynamic resistance, and in a sense it’s a little bit of a downtrend line. After that, we have a downtrend line just above them, so it all comes together to offer quite a bit of selling pressure.If we do break down below the bottom of the candlestick for the trading session, then I think it’s likely that we go to test the double bottom just below.
Even though we get rallies from time to time, they have so far proven to be nice shorting opportunities. I don’t necessarily think that we are during any major trend change, and it’s worth noting that the $1680 level had previously been supported, so it should now be resistance.
will continue to be a major problem in this market, and therefore I am keeping my position size smaller than usual in this type of environment.