Spot Gold collapsed in early European trading on Monday, falling around 1.7%, after recovery rally was repeatedly capped by 55DMA and falling 4-hr cloud at $1258.
The yellow metal price fell to $1236, the lowest since 16 May, after strong bearish acceleration fully retraced $1240/$1258 correction rally.
Fresh bears were so far contained by 200SMA ($1236) but near-term risk is shifting lower after strong fall, as daily studies turn into bearish setup. Break below 200SMA handle would expose next supports at $1233 (Fibo 76.4% of $1214/$1296 ascend) and $1230 (16 May) low).
Broken Fibo 61.8% at $1245, reinforced by daily cloud $1245/48) should cap corrective rallies before bears resume.
Daily close below $1240 (former low of 21 June) will be seen as strong bearish signal.
Traders are focusing on Fed Chair Janet Yellen’s speech on Tuesday for more signals about Fed’s next rate hike action, as well as US Q1GDP data on Thursday, which is expected to give more details about the health of the US economy.
Res: 1245, 1248, 1251, 1255
Sup: 1240, 1236, 1233, 1230
