Gold price continues to trade sideways between $1,195 and $1,177. Support was tested yesterday and held, but bulls could not break resistance. The strong Dollar remains the biggest influence so far to the downside for Gold.
Blue line -short-term resistance
Green line – short-term support
Gold price is trading around the 4 hour kijun- and tenkan-sen indicators (yellow and red lines). Price is below the Ichimoku cloud confirming bearish trend. Only a break above $1,220 will change short- and medium-term trend.
Nothing new on our weekly chart. Price right at the 61.8% Fibonacci retracement and at the lower cloud boundary. This back test of the breakout above the weekly cloud is very important. If price manages to bounce back above the cloud, this will be a very bullish sign that could imply a new uptrend starting with targets above $1,375. A break however below the cloud will open the way for a move towards at least $1,120.The material has been provided by InstaForex Company – www.instaforex.com