Gold’s decline accelerates on broad based Dollar strength, and it’s now pressing 1800 handle. The strong break of 55 day EMA dampens our original bullish view. That is, rise from 1676.65 and fall from 1916.30 might both be legs of the consolidation pattern from 2075.18 only, which is still unfolding.
Deeper decline would now be seen to 61.8% retracement of 1676.65 to 1916.30 at 1768.19. Sustained break there will bring further fall to 1676.65 and below, to extend the pattern from 2075.18. Also, for now, risk will stay on the downside as long as 1855.30 support turned resistance holds, in case of recovery.
