Gold price remains under pressure. Price has formed a downward sloping wedge pattern and with the RSI forming bullish divergences, I favor a reversal to the upside rather than a sharp move lower.
Green lines - wedge pattern
Black lines- Fibonacci retracement
Gold price is trading below $1,770. Short-term trend remain bearish as price is making lower lows and lower highs. Price has retraced more than 61.8% of the latest rise from $1,720, but price continues to respect the 78.6% retracement level. Support is at $1,750 next. This is the last stand for bulls. Breaking below it will open the way for a move below $1,720. The bullish RSI divergence and the wedge formation, tell me that there are more chances of a coming upward reversal. I expect volatility to rise soon and most probably provide an upward break out. Previous support at $1,780 is now key short-term resistance. Bulls need to break above it.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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