A quick drop to $1,878 as gold falls below $1,900
Gold just triggered a few stops on the way down here as it falls from $1,904 to $1,878 in a quick move, before a slight bounce now back above some key support levels around $1,893-94 to start European morning trade.
The drop comes upon a break of its 200-hour moving average around $1,907 as sellers now seize near-term control but the dip below the figure level likely exaggerated the drop on the way down as the dollar also sits firmer to start the session now.
It looks like sellers are aiming for a break to the downside and a push below the key daily support levels i.e. 100-day moving average (red line) @ $1,893 and the broken trendline resistance - now turned support - @ $1,894 will solidify the move.
There is also some support from the 38.2 retracement level from the swing move higher since December @ $1,885 but I'll be looking closer towards the 200-day moving average (blue line) @ $1,838 for dip buyers to step in.
