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 at $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 sheds light on additional underperformance over 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). This is in addition to the fact that there is some room for selling on the daily charts, with support at $1.828 and 38.2% Fibonacci resistance at $1.827 being the next targets. The door to weekly support at $1.807 is just beyond this.
To avoid repeting myself, I will not repeat my previous research on trend structure in higher timeframes. (italics).
Technically speaking, the trend is now higher. In December, the trend reversed.