Gold price is trading around $1,971 after making a low around $1,951. Price has broken out of the bullish channel and is now back testing the lower channel boundary from below. Today’s high at $1,973-$1,974 challenged the channel boundary resistance. The bearish RSI divergence last week warned us of the price vulnerability. Price made a pull back after getting rejected at the 50% Fibonacci retracement. Recapturing $1,974 and staying above it is key for the continuation of the bounce. With the FOMC, ECB and BOJ being the central focus this week, traders better be patient.
The material has been provided by InstaForex Company – www.instaforex.com
Black line- bearish RSI divergence
Blue lines- Fibonacci retracements
Red lines- bullish channel
Gold price is trading around $1,971 after making a low around $1,951. Price has broken out of the bullish channel and is now back testing the lower channel boundary from below. Today’s high at $1,973-$1,974 challenged the channel boundary resistance. The bearish RSI divergence last week warned us of the price vulnerability. Price made a pull back after getting rejected at the 50% Fibonacci retracement. Recapturing $1,974 and staying above it is key for the continuation of the bounce. With the FOMC, ECB and BOJ being the central focus this week, traders better be patient.
The material has been provided by InstaForex Company – www.instaforex.com
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