Major support exists in the $924-$926 range including the 55 day moving average. A close below here could open up the way for a much more serious correction with the 200 day moving average at $783.
The last time the price looked so stretched relative to the moving averages was May 2006 after which it fell from $730 to $543. The base that time was the 200-day moving average. In addition the 55 week moving average stands at $757.
A weekly close below $961 would also be a bearish weekly reversal for the first time in the rally from $641 in August 2007.(Something we did not even get in the 2006 correction.
Finally Gold and EURUSD have been very correlated….watch out on EURUSD if we see this Gold move.
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