Gold price continues to trade above the red trend-line support coming from $1,140. The сritical support trendline is held. However, the price is still below the Ichimoku cloud resistance. I believe we will see a break above or below the critical levels soon and Gold price will start a new trend.
Gold price has reached the 50% Fibonacci retracement of a decline from $1,307 to $1,140. The upward bounce from the March lows is corrective and in 3 waves. I believe we should expect the next impulsive move downwards towards the critical support at $1,130.
The weekly chart remains bearish. The price is below cloud resistance and below both the tenkan- and kijun-sen. As long as Gold price is below $1,230, I would remain bearish for all time frames. I expect Gold price to challenge $1,130 and break it in the long term. Downside targets at $1,000 and $900 are possible.The material has been provided by InstaForex Company – www.instaforex.com