Overview: Gold is losing further ground on Monday, kicking off the week on the wrong footing, as its heads closer towards the level $1800 and keep its eyes towards the downside momentum. Gold bears are testing the bearish commitments at the downside momentum. Gold sellers returned after rejection at the potential Ema lines and keep its eye towards the downside level in the market. On the last Friday the pair is rejecting the level $1850 in the market, and makes the movement towards the lower side in the market.
Technical analysis: From the technical point of view we can say that market makes the downside momentum in the market. The market losses its volatility towards the market and makes the lower low side in the market. The potential bearish marabuzo formed in the market and gives strong force towards the selling side in the market. The pair still not able to cross 200 SMA as the trend is yet not is confirmed. On the hourly chart we can see the rounding top is forming as the next selling target price will be $1800 in the market. The RSI crosses its situation from its overbought situation and MACD also shows bearish crossover in the market.
Trade tips: Sellers will sit on the selling side at level $1853 and target will be $1830 or $1800 and stop loss will be $1880.
