European gold prices ended Monday trading at a significantly lower level than the US dollar. This was after H1 price pencilled in an exemplary rejection from Quasimodo support which turned resistance from $1.879. This highlights the possibility for short-term flows to zero in on H1Quasimodo resistance, which has turned potential support at $1.857. It also highlights additional underperformance on the weekly, and daily timeframes.
The Relative Strength Index (RSI) has been in overbought condition for both the weekly and daily timeframes. Since the daily established negative divergence, it has been exploring space below the 50.00 centerline (negative momentum). There is still some room to sell on the daily chart. The 50-day simple moving Average at $1.846 will be followed by support at $1.828 and a 38.2% Fibonacci Retracement at $1.827. The door to weekly support at $1.807 is just beyond this.
To avoid being repetitive, my outlook regarding trend structure at higher timeframes is the same as previous research (italics).
Technically speaking, the trend is now higher. The trend reversed in December of last year…