Support on Gold?

The bearish momentum accelerates on gold as shown on the daily chart and the price falls exactly to the 55 day EMA (purple line), around the 1324 level. The US Dollar rallied strongly during today’s session and that has pressured the price of gold to the downside, due to the negative correlation between the Greenback and the precious metal. At the current level, the price of gold may either bounce to the upside from the 55 day EMA or break that moving average to the downside to continue falling to the 1300 zone. In case of a bearish breakdown, the 1300 area along with the 200 day EMA (blue line) could act as support. Below the 200 day EMA, gold has the road clear to fall all the way down to the 1238 zone. In case of a bullish bounce from the 55 day EMA, gold may find some resistance around the 1350 level. Above the 1350 level, its next resistance is still the peak at the 1366 level.