Gold prices are moving sideways after the aggressive selling interest from the 19-month peak of 2,070.40, returning back near the 1,900 mark. The RSI indicator is flattening around the oversold region, while the MACD is still developing with weak momentum in the negative area. In trend indicators, the 20- and 40-period simple moving averages (SMAs) posted a bearish crossover in the near-term.
Should the market extend losses, support could be met between the 200-period SMA at 1,890 and the 1,883 barrier. A significant leg below this area could sent prices towards the 1,844 hurdle.
On the flip side, if the pair bounces up, immediate resistance could be met at the 20-period SMA currently at 1,947 ahead of the 1,960 level. Above these lines, the 40-period SMA at 1,975 and the 2,010 key level may act as tuning points.
In the bigger picture, the price is bullish as long as it holds above the 200-period SMA. In case it violates this line, bears could take the upper hand.Â
