Downside momentum dominated the yellow metal on Monday, as it fell 0.80% mid-session. This fall was stopped by the 100.00% Fibonacci retracement which represents the pair’s lowest position since July 2017.
Gold has since recovered, surpassed the 55-hour SMA and was testing the 100-hour moving average early on Tuesday. The pair has already halted two times near this yearly low, so it is likely that a decline below this level does not occur. Thus, traders could look towards the bullish scenario.
The nearest resistance is the aforementioned 100-hour SMA, with the 200-hour and 200-period (4H) ones being located nearby.
