Gold continues to decline toward the 1900 psychological level

After 200 EMA failed to hold support around 1940 mark, the broad picture for gold turned to bearish with selling pressure dragging the price below the crucial support of the 1917 mark.

Hello traders,

Welcome to another daily technical analysis video from Inveslo on Monday, April 25.

This is Ali, VP of market analysis and education taking a quick look at gold in the four-hour time frame.

As we can see on the chart, after 200 EMA failed to hold support around 1940 mark, the broad picture turned to bearish with selling pressure dragging the price below the crucial support of the 1917 mark. In the event that negative momentum continues gold can fall towards the psychological level at 1900 mark. And further decline may send the price even lower, to 1890 barrier at around one-month low.

On the flipside, if buying interest rises at the 1900 key level, we may see some upside correction to retest the 1917 broken support as a new resistance.

Momentum oscillators suggest bears are likely to take a breather in short term. RIS is moving down in the oversold area, which is implying the exhaustion of sellers. Likewise, momentum is showing sign of bottoming around 96.82. while, MACD bars are dipping below signal line in negative region.