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The trend on the hourly chart below is still firmly down. This current wave higher could be the next lower high and there could be some signs of a rejection point at the moment, FXStreet’s analyst Rajan Dhall reports. 

Key quotes

“Looking at the 1-hour chart the trendline looks like it has been rejected again at $1727.37. Adding to this the price level also confluences at the 50% Fibonacci retracement level. Lastly, the wave low resistance from 19th May at $1725.96 per troy ounce is also at the same zone marked by the red rectangle.”

“The Relative Strength Index indicator is also in an oversold area. This also indicates there could be a move lower as the price looks to be overextended.”

“The MACD histogram is above the zero line but the signal lines might just be starting to have a bearish cross over. Overall on the higher timeframes, this is still an uptrend but maybe the short-term correction is not over.”