The price has decreased today and has resumed the yesterday’s bearish candle, has fallen below the 1200 psychological level and could drop much deeper in the coming period because has failed to stay above a major dynamic resistance. Technically should drop further because he had a false breakout on Tuesday, but we still need a confirmation that the price will start another leg lower.
The Gold has decreased as the USD has managed to increase again, the greenback could extend the latest gains because has received support from the United States economic data, we had positive data, which has boosted the greenback.
The United States Unemployment Claims have decreased significantly from 249K to 234K in the previous week, has come in surprisingly because the economists have forecasted an increase to 252K jobs, while the Philly Fed Manufacturing Index has increased from 21.5 to 23.6 points, beating the 16.3 estimate. Moreover the US Housing Starts have increased from 1.10M to 1.23M, exceeding the 1.19M prediction, has reached the highest level of the last 2-months, while the Building Permits have remained steady at 1.21M for the second month in December, but has failed to meet the 1.22M estimate.
The rate has decreased and has slipped below the 150% Fibonacci line (ascending dotted line), could drop much deeper if will stabilize again below the 150% line. Technically should drop again after the false breakout above the median line (ML) of the descending pitchfork and above the 150% Fibonacci line. We’ll have a confirmation that will drop again if we’ll come back to test and retest the mentioned dynamic resistance levels, we’ll have a great selling opportunity if the price will test the confluence area formed at the intersection between the median line (ML) with the 150% Fibonacci line, the first downside target will be at the first warning line (wl1) of the previous ascending pitchfork.
A rejection from the ML will send the rate towards the 50% Fibonacci line (descending dotted line) and towards the lower median line (LML) of the descending pitchfork in the coming months.