Gold price made a pullback today and can still move lower towards the 38% Fibonacci retracement support. Important resistance is found in the $1,130-40 area and I believe we can see this level.
Blue line – trend line support
Blue area -resistance
Gold price is above the Ichimoku cloud. A trend is bullish. Support is at $1,110 in the short term. Medium-term support is at $1,090. Only a break below $1,090 will confirm that the corrective bounce is over and we are heading to new lows.
Blue area – resistance
The weekly chart remains in favor of bulls in the short term but overall a longer-term trend remains bearish as price is still below the weekly Ichimoku cloud. Gold is probably heading towards the blue shaded area as shown on the weekly chart above. Support is critical at $1,080, so a weekly break below this level will be a sell signal with $1,040 as a target.
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