IronFX: Gold slid on Wednesday, falling below the support (now turned into resistance) territory of 1323 (R1) to stop near the 1313 (S1) obstacle. In my opinion, the dip below 1323 (R1) signaled the continuation of the short-term downtrend started on the 7th of July.
I would now expect another dip below 1313 (S1) to challenge the 1305 (S2) line, marked by the low of the 28th of June. Our short-term oscillators reveal downside speed and corroborate somewhat my view for further declines.
The RSI edged down and hit support near it 30 line, while the MACD, already negative, has topped and fallen below its trigger line.
Switching to the daily chart, I see that the metal is trading above the uptrend line taken from back at the low of the 17th of December. In my view, this keeps the longer-term picture cautiously positive.
I would treat any further declines that stay limited above that line as a corrective phase of that longer-term uptrend.
• Support: 1313 (S1), 1305 (S2), 1300 (S3)
• Resistance: 1323 (R1), 1340 (R2), 1348 (R3)