Gold price broke its short-term support yesterday but found the next support at $1,120, where the recent low was found on August 18. The short-term trend is bearish. Bullish signal will come when we break above $1,133.
Green line – support
Black line – resistance
Gold price is trading above the Green trend-line support but below the Black trend line that connects its two recent highs. The rice is also below the Ichimoku cloud in the 4-hour chart. This confirms that bears are in control of the short-term trend. The picture will change if the price breaks above $1,133.
The weekly chart is still supported by the tenkan-sen (red line-indicator), but we should see a bounce today towards $1,145 after the announcement of the Non-Farm Payrolls. Only in that case bulls will have chances of success. If the week closes below $1,120, the next-week trend will be bearish.The material has been provided by InstaForex Company – www.instaforex.com