I have been expecting GOLD to be "in touch" with EMA(20) and EMA(40) and it is (or about to shortly) happening now.
I can see there are 2 potential direction here :
1. If price can close below EMA(20), price will potentially be pushed down to 1170. Why 1170? Because apparently this is the latest most respected (red box) price level after 1127. Bear is gaining power here.
2.If EMA(20) and EMA(40) can act as dynamic support line and are not broken out, Bull may re-gain its power somewhere around 1185 zone, The reason why I'm saying this is because this is the first time EMA lines are re-tested ever since the uptrend started, and referring to historical data, price may gain power after the first retest to the EMA lines.
Overall, I'm still expecting the price to move even lower as there is no significant force of price pushing higher at the moment. It'll be an interesting next few days to see if reversal can happen within this zone.
I can see there are 2 potential direction here :
1. If price can close below EMA(20), price will potentially be pushed down to 1170. Why 1170? Because apparently this is the latest most respected (red box) price level after 1127. Bear is gaining power here.
2.If EMA(20) and EMA(40) can act as dynamic support line and are not broken out, Bull may re-gain its power somewhere around 1185 zone, The reason why I'm saying this is because this is the first time EMA lines are re-tested ever since the uptrend started, and referring to historical data, price may gain power after the first retest to the EMA lines.
Overall, I'm still expecting the price to move even lower as there is no significant force of price pushing higher at the moment. It'll be an interesting next few days to see if reversal can happen within this zone.