By Anton Eljwizat – Gold rose towards $1243 on Monday after the single currency plunged to its lowest in more than four years against the U.S. dollar. However, I will illustrate below that the gold may very well be heading for a reversal and it might have the potential of reaching towards $1225 in the coming days. This recent activity has raised the stakes for traders. From here on, the forex and commodity marker will see very high volatility indeed
• The technical indicators used are the Slow Stochastic, Relative Strength Index (RSI) and Williams Percent Range.
• Point 1: The Slow Stochastic indicates a bearish cross, which may signal a downward movement is going to occur in the near future.
• Point 2: The RSI signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.
• Point 3: The Williams Percent Range has peaked near at the 0 marker, which means that there may actually be a strong level of downward pressure.
Gold 4-hour Chart
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