Gold remains at the back foot on Thursday as recovery attempts following previous day’s fall were limited and capped by daily cloud base ($1325) and subsequent weakness shifts near-term focus lower.
Bearish bias remains intact and showing scope for retest of rising 100SMA ($1319) which contained Wednesday’s attack.
Fresh strength of US dollar keeps gold under pressure for extension of bear-leg from $1355 (18 Apr lower top).
Firm break through 100SMA would open way towards very strong support at $1307 higher base (also floor of broader $1307/$1365 congestion), break of which is needed to generate stronger reversal signal.
Bearish setup of daily techs is boosted by freshly formed daily Tenkan-sen/Kijun-sen bear-cross), while the upside remains well protected by daily cloud ($1325/34) and a cluster of daily MA’s between $1331 and $1336, which are expected to maintain bearish bias while capping recovery attempts.
Res: 1326, 1331, 1334, 1336
Sup: 1321, 1319, 1317, 1310
