Gold price was pushed lower yesterday after the Leading Indicators numbers release and reached the support level of $1,185 by the upward sloping trendline. My longer-term view remains bearish as I believe that the area of $1,130-40 will be tested again once we break out of the trading range of $1,220-$1,175.
Red line = trend line support
As can be seen in the 4-hour chart above, the trendline that connects important lows was reached yesterday and support was held. However, the price is below the Ichimoku cloud, which means that the short-term trend remains bearish. Today, we could see a bounce towards $1,200, which is the 1st short-term resistance level. A breakout below $1,180 will not be a good sign.
The weekly chart remains bearish as the price was rejected once again at the kijun-sen and the price is trading below the tenkan-sen. The price also was rejected at the cloud resistance and this is another bearish sign. The weekly chart remains below the cloud and I believe in the longer-term we will see Gold price below $1,150-$1,130. This is critical support that if broken it can push price towards $1,000.The material has been provided by InstaForex Company – www.instaforex.com