Short-term bearish bias
Key levels: downside: 1298/ upside: 1306
Bullion is finding the 20-day MA as a robust resistance level, and both tests have so far failed to push higher. The bearish MA cross can be seen as clear signal that the mood has turned south. A deeper correction or even a U-turn could be in the making if buyers struggle to break into higher ground.
On the 4H chart, the challenge to reach higher has intensified. The double top at 1311 keeps the price in check. Stiff selling pressures start to show up as the price dropped to the psychological level of 1300 in hopes of finding bids. The hourly chart is painting a bearish picture after the price broke below 1304 while the faster MA dipped below the slower one, as a confirmation that selling pressures have been building up.
1306 could cap price’s advance if sellers show more aggressiveness. On the downside, 1298 is the next target in the short-term.