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Gold<\/a> continues to fall today following yesterday\u2019s one-day bearish reversal. Yesterday\u2019s high reached a marked target zone. Once reached resistance kicked in and gold pulled back before accelerating to the downside following the U.S. Federal Reserve release. Today, it continued lower but has come a bit off the bottom at the time of this writing.<\/p>\n<\/div>\n<\/div>\n The next key support level is around the 200-Day EMA at 1,911. It was almost reached today as the day\u2019s low was 1,914. During the decline the 61.8% Fibonacci retracement of 1,919 was exceeded to the downside. This puts the 78.6% retracement at 1,911 in sight. Of course, that is the same price level as the 200-Day line thereby making it even more potentially significant to watch for bullish signs if it is reached.<\/p>\n Two indicators pointing to the same or a similar price level generally strengthen the potential significance of the level. In the case of gold, this would mean that the 1,911 should see strong support. If it does not and rather the price of gold continues to fall the 1,901-swing low could be at risk of being broken to the downside.<\/p>\n A bullish breakout of a weekly bullish hammer chart occurred earlier this week. Currently, the weekly pattern shows a bearish inverted hammer with price within last week\u2019s range. In other words, a breakout above last week\u2019s high of 1,931 high occurred, but strength from buyers started to taper off to the point where gold may not close the week above last week\u2019s high.<\/p>\n A weekly close above last week\u2019s high is needed to confirm the strength shown in the breakout. If that doesn\u2019t happen, the breakout remains prone to failure. There are two trading days remaining to the week, so we will be watching the weekly close carefully to see where it is within the week\u2019s range as well as relative to last week\u2019s high.<\/p>\n For a look at all of today\u2019s economic events, check out our\u00a0economic calendar<\/a>. <\/b><\/p>\n<\/div>\n<\/div>\n200-Day EMA Next Support at 1,911<\/h2>\n
Weekly Pattern Shows Weakening<\/h2>\n