Gold price technical analysis: the XAU/USD pair started a strong decline breaking 50 hourly SMA


Gold price started a major downward move from well above the $1,305 level against the US Dollar. The price broke the $1,300 support level to move into a short term bearish zone.

The recent decline was strong as the price even broke the $1,294 support and 50 hourly simple moving average. The last swing low was formed near $1,290 before the price corrected higher. However, the recovery was capped by a bearish trend line with current resistance at $1,292 on the hourly chart.

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The price also failed near the 23.6% Fib retracement level of the last drop from the $1,310 high to $1,290 low on FXOpen UK. There was an extended decline recently and the price broke the $1,290 support.

The price is currently trading with a bearish angle and it seems like there could be more losses below the $1,285 support in the near term.

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