FX.co ★ Gold challenges medium-term bullish channel

Gold price has shown that bulls are not strong enough to break above the $1,520 short-term resistance level. Now price is challenging the important lower boundary of the bullish channel around $1,500.

Red lines - bullish channel

Yellow rectangle - short-term resistance

Green rectangle - target area if support fails to hold

Gold price is in a bearish short-term trend. Price could continue lower towards $1,450-$1,420 if price breaks out of the bullish channel. If support and recent lows at $1.484 fail to hold, then we should expect at least a $30 move lower. Short-term resistance at $1,520 must be broken in order for short-term trend to change to bullish again.

As the Ichimoku cloud indicator shows us, price remains in a bullish medium-term trend but price is unable to break and close above the tenkan-sen and the kijun-sen indicators. So resistance is confirmed by the Ichimoku indicator at $1,520-25. Support is at the upper cloud boundary at $1,470 while the lower cloud boundary is at $1,440. As long as price is below $1,525 I will remain bearish.