Spot Gold price eases on fresh recovery of dollar on Tuesday and cracked initial support at $1250 (broken 50% retracement of $1296/$1204 descend).
Steep ascend from $1204 (10 July low) showed initial signal of stall as Monday’s action ended in long-legged Doji after posting fresh recovery high at $1258.
Thick daily cloud (spanned between $1255 and $1265) marks strong barrier and weighs on near-tem action, as price was unable to sustain break into cloud on Monday.
Evening Doji Star reversal pattern is forming on daily chart and needs close below $1250 for confirmation.
Slow stochastic is about to emerge from overbought territory on daily chart and boost bearish signal.
Extension below next support at $1247 (converged 55/100SMA) would increase risk of deeper pullback towards $1238 (double-Fibonacci support – Fibo 38.2% of $1204/$1258 upleg / broken Fibo 38.2% of $1296/$1204 downtrend).
Res: 1255, 1258, 1261, 1265
Sup: 1249, 1247, 1243, 1238
