Gold price is trading around $1,960 after making a high around $1,987 and getting rejected at the 50% Fibonacci retracement of the last leg down from $2,080. Price remains inside the red upward sloping channel and is now challenging the lower channel support. Gold price is under pressure. Support is found at the lower channel boundary at $1,955. So far price continues making higher highs and higher lows inside the red channel. An exit out of the channel and a break below $1,945 would be a bearish sign, implying more downside should be expected. For now our primary scenario is for Gold price to find support around the red lower channel boundary and turn higher.
The material has been provided by InstaForex Company – www.instaforex.com
Black line- bearish RSI divergence
Red lines- bullish channel
Blue lines- Fibonacci retracement levels
Gold price is trading around $1,960 after making a high around $1,987 and getting rejected at the 50% Fibonacci retracement of the last leg down from $2,080. Price remains inside the red upward sloping channel and is now challenging the lower channel support. Gold price is under pressure. Support is found at the lower channel boundary at $1,955. So far price continues making higher highs and higher lows inside the red channel. An exit out of the channel and a break below $1,945 would be a bearish sign, implying more downside should be expected. For now our primary scenario is for Gold price to find support around the red lower channel boundary and turn higher.
The material has been provided by InstaForex Company – www.instaforex.com
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