Gold is in steep fall in early European session, and selloff accelerates to as low as 1877.6 so far, after breaking through 1900 handle. The current development suggests that prior rise from 1764.31 has completed at 1959.16 after rejection by 1965.50 resistance. Deeper fall is expected as long as 1927.49 minor resistance holds.
Immediate focus is now on 1856.98 support. Decisive break there should confirm this bearish case and turn outlook bearish. More importantly, such development will argue that whole consolidation pattern from 2075.18 is not finished, and is extending with another falling leg. Further decline would then be seen through 1764.31 low. That could also help give Dollar a floor for stronger rebound.
