Gold leans on an important support - Technical Analysis. - 22-03-2016

Gold prices fell in the intraday levels, reaching the important support of 1,207.40, which represents the ratio 38.2% of Fibonacci retracement levels for an ascending wave in the short term (from 1,115.63 to 1,264.12), with ongoing positive pressure from the SMA50, while noting relative power indicators have reached extremely overbought levels compared to the gold's upside movements, with prices trading within a downward correctional wave.

Therefore we expect more losses to come for the precious metal, especially if it breached the support of 1,207.30, targeting thereafter the support of 1,189.88, representing the ratio 50% of the same retracement levels mentioned earlier.