Gold continues to trade within the larger triangle pattern. The trend is bearish. We could see a short-term bounce towards $1,180 or even $1,190 if support at $1,170 holds. My longer-term view remains bearish.
Blue lines – triangle boundaries
Gold is below the Ichimoku cloud and above the triangle lower boundary. There are increased chances of a bounce from current levels. Resistance is at the 38% and 61.8% retracement levels. Breaking below $1,170 will imply bulls are very weak as they cannot retrace even towards the 38% level.
The weekly chart remains bearish as this week's candle has made a lower low and a lower high relative to last week. Price was rejected at the tenkan-sen and we remain below the cloud. Trend remains bearish for the longer-term and neutral for the medium-term as the price remains inside the trading range of $1,130-$1,230.The material has been provided by InstaForex Company – www.instaforex.com