Gold hit the lowest in ten weeks on Wednesday, following fresh acceleration after breaking below the lower boundary of a bear-channel (which repeatedly contained attacks in few previous sessions).
Steep bear leg, the part of larger downtrend, extends into fourth straight day and eyes key support at $4099 (2026 low, posted on Mar 23).
The latest US economic data showed that inflation continues to rise, with markets already pricing 0.25% Fed rate hike in coming months, that is expected to continue to underpin dollar, along with solid US labor data (released last Friday).
The latest formation of 10/200DMA death cross contributes to signals from firmly bearish daily studies, which favors eventual attack at $4099 target, but bears may face headwinds here from oversold conditions.
In current situation, technical correction is likely to be limited (upticks to be ideally capped by broken channel support line) and provide better levels to re-enter bearish market, for probe through $4099 and attack at next strong supports at $4077 (Fibo 38.2% of $1616/$5598) and $4000 (psychological).
Res: 4236; 4285; 4303; 4366
Sup: 4099; 4077; 4000; 3928
