Gold has moved lower in trading today – moving down after some technical selling clues noticed yesterday (see: Forex technical trading: Gold looking soft. Will the sellers take back control? ).
Gold is approaching the 200 day MA at 1252.85 and 38.2% at 1254.42.
The fall today has seen the price move back toward the 200 day MA (green line in the chart above) and the 38.2% of the move up from the January low. The 200 day MA comes in at 1252.86. The 38.2% comes in at 1254.42. The combination should attract some buying on the first test at least with stops below.
Looking at the 5 minute chart, the pair may be approaching the key support but the picture is showing accelerated momentum below the lower trend line. If the daily support holds, traders will want to see some take back from the short term perspective. Getting back above the lower trend line in the chart below is step one. The level comes in around 1259 currently.
Gold is accelerating the downside.
