Gold price is making an attempt to break above the short-term resistance levels and reverse the short-term bearish trend. The price could bounce towards $1,115. Only if it breaks above $1,125, we could say with certainty that short-term trend has changed.
Black line – resistance
Gold price has broken above the black downward sloping trend-line resistance and could bounce towards the cloud resistance at $1,115. I remain bearish, but I would not open new short positions at current levels as there is still a high possibility of an upside bounce.
The weekly chart remains bearish as the price is trading below the tenkan-sen (red line indicator). The weekly chart is still below both cloud indicators and the Ichimoku cloud. Price is trading above $1,100 and a bounce towards $1,115-20 is very possible. A break above $1,125 will increase the chances of a move towards $1,150. Breaking above the 61.8% retracement will the pair push towards the weekly cloud resistance at $1,200.The material has been provided by InstaForex Company – www.instaforex.com