100 day MA at the 1216.85 area
Gold is moving back down - and with the decline - brings the pair closer to the key support against the 61.8% retracement at the 1221.37 and the 100 day MA (blue line in the chart below) at the 1216.85 area.
Yesterday, the low tested that 100 day moving average and held. The market price rallied back up to a high of 1232.75. However, sellers reemerged and forced the price back lower after testing a topside trend line resistance line on the hourly chart (see blue circle 3 in the chart below).
Although the price is being pressured, I would look for the support buyers to show up against the 61.8% retracement and 100 day moving average (blue line in the chart above) levels now. It simply is a key risk defining level. If there is a break below the 100 day MA however, look for stops to be triggered.
As a point of reference, the 200 day MA was a key support level (see green line in the chart above) until the US employment report pushed the pair through that support. The ability to hold support yesterday and again today, suggests to me that traders are leaning against the level to define and limit the risk. Resistance will be eyed against the 50% of the move up at the 1221.81 level now.
