The precious yellow metal was directionless on Tuesday as the US Dollar Index (US DXY), which tracks the greenback strength against a basket of six currencies, reclaims its 93.00 objective and posts a new 16 week high.
Due to the surge in coronavirus Delta variant cases, largely among the unvaccinated, spurred some safe-haven bullion buying in recent sessions.
According to CDC data, the U.S. is averaging about 26,000 daily cases in the last seven days, more than double the average from a month ago.
Since the posted Dragonfly Doji, market participants remain indecisive as a Doji candlestick signals market indecision.
The Dragonfly Doji is a type of single Japanese candlestick pattern formed when the high, open, and close prices are the same creating a ‘T’ shape.
Viewing the technical display, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator has buckled and plummeted beneath the 50-midway point (negative signal), while the Moving Average Convergence Divergence (MACD) supports a positive signal, although it is weakening.
The Average Directional Movement Index (ADX) trend indicator decline suggests the presence of a trading market and the absence of a trend.
Considering the lack of momentum since the rebound, eyes now turn back to the support, with the immediate target viewed at $1,798-00.
If breached, it exposes the key bearish trigger level at $1,786.
A decisive break here negates the upside risks and exposes the $1,760 region.
The resistance is $1,824-28, with the $1,833-35 seen as a near-term cap.