Gold price was sharply lower on Wednesday, as dollar rose on US decision to exit international nuclear deal with Iran.
The yellow metal spiked to one week low at $1304 and cracked key support provided by rising 200SMA which contained larger downtrend from $1355 last week.
Near term focus turns lower again as recovery phase stalled at $1318 (double-Doji on Mon-Tue) and subsequent bearish acceleration retraced over 76.4% of $1301/$1318 recovery leg, signaling an end of recovery phase.
Daily tech weakened and support attempts to eventually break below 200SMA ($1305) and generate strong bearish signal for extension towards $1286 (Fibo 61.8% of $1236/$1366) on break and close below pivotal supports at $1305/01.
Falling 10SMA which capped recovery attempts maintains bearish pressure and marks solid resistance at $1312, where corrective upticks should be limited.
Res: 1308, 1312, 1316, 1318
Sup: 1305, 1301, 1295, 1286
