Gold support must hold to prevent impulse-leg down

XAUUSD

Gold’s EMAs are in bearish formation. The green 5-day EMA is below the orange 13-day EMA, and the orange 13-day EMA is below the black 34-day EMA. There is a significant support area around the 1,305 level (blue shaded horizontal). Price retraced and tested the orange 13-day EMA. This held and gold may be looking to launch an attack on the support area again. It is interesting to note that the RSI(9) is below 50 and indicative of an underlying bearish momentum. Given that there is generally an inverse relationship between the USD and gold and that the USD is showing strength, gold bulls should be concerned here.

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