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27.05.202017:58 Forex Analysis & Reviews: Short-term Ichimoku cloud indicator analysis of Gold

Gold price has broken below key short-term Ichimoku cloud support indicators. Price could continue lower towards $1,650 as long as we stay below $1,700-$1,710. The RSI bearish divergence has warned us when price was making new highs.

Exchange Rates 27.05.2020 analysis

Gold price has broken below the key short-term support provided by the kijun-sen (yellow line indicator). The chances for reaching the Ichimoku cloud around $1,650 are high. Price usually pulls back towards cloud support when price breaks below the kijun-sen.

Exchange Rates 27.05.2020 analysis

Black line - bearish divergence

Green rectangle - target

Gold price is pulling back after a new higher high and another bearish divergence in the RSI. We have been talking about this divergence since the upward break out of $1,720 and when we were looking for a top near $1,770-80. Now price has broken below $1,700 and the more it stays below it, the higher the chances of seeing lower levels of support. Even if bulls step back in, the upside potential is limited to a move towards $1,780 area.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Alexandros Yfantis,
Analytical expert of InstaForex
© 2007-2021
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