100 hour MA and trend line stalls the rally. Traders to new session lows
The price of gold is trading down $6.75 or -0.5% at $1313.20. The declines erased a similar gain earlier in the day. The move lower is getting its catalyst from:
- A higher USD. The dollar was lower into the NY session. It is now down or near unchanged vs. all the major currencies with the exception of the CHF (although much of the earlier declines in that pair has been retraced.
- More bearish technicals. The move higher today stalled at a trend line connecting the highs from the week. It was also near the 100 hour MA (blue line).
What next?
The pair is approaching a lower trend line on the hourly at $1311 (and moving lower). The natural level at $1300 could give traders cause for pause.
Also helping the bearish bias, is the pair fell below a trend line on that chart at the $1315.62 area. Stay below keeps the sellers more in control.
