Gold: Bearish signals, break of $1634 to open downfall toward $1545.54

Gold’s technical indicators have picked up on the slowing momentum and shows some bearish signals. Rajan Dhall, an analyst at FXStreet, expects the $1545.54 to be exposed if the yellow metal breaks below $1634.

Key quotes

“The Relative Strength Index indicator has a three-wave divergence. This is when the indicator makes lower waves while the price makes higher ones.”

“The MACD signal lines are also gearing up for a bearish cross after being overextended for a while now. The histogram also looks like it might be dipping under the zero mid-line soon.” 

“The support zone at $1634.00 matches up nicely with the 161.8% Fib extension level making the level stronger. Below that, there is the $1545.54 support.”