Gold Dropping Sharply Toward Range Support Zone; 1560 in Sight

By Fan Yang Gold Technical Update XAU/USD (Gold)

Gold continues to fall since finding a high near 1800 at the end of February. In march it has been trading in a declining channel. The latest bear swing started from the central pivot near 1666.50 and is breaking below some recent lows at 1623 and now 1612. In the intra-day 1H and 4H charts, the market looks like it is going to become a bit oversold in the short-term as it nears the 1600 handle. However, further downside risk remains. The next support pivot is at 1560. Below that is the range support zone that goes down toward the 1520-1530 area. As the market gets closer and closer to the lower end of the range suppor a range-bound market will have stronger and stronger tendency to revert back toward the central pivot around 1666.50. We will go into the fundamental risks, technical setups, and trade plans with risk assessment for gold as well as other currency, equities, bonds, and commodities markets all week long in our Market Intelligence Briefings. Subscribe Today! Fan Yang CMT is a forex trader, analyst, educator and main contributor for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources. http://www.ibtimes.com/articles/338554/20120508/gold-dropping-sharply-toward-range-support-zone.htm