FX.co ★ Ichimoku cloud indicator Daily analysis of Gold

Gold price managed to make another higher high today at $1,592 but price is pulling back down. Price remains inside the short-term bullish channel. Bulls need to overcome the bearish divergence warning signals and provide a strong upward break out above $1,600.

Green lines- bullish channel

Gold price is bouncing once again off the lower channel boundary. Trend remains bullish. There is bearish divergence in the 4 hour chart but this is only a warning. Support is at $1,569-67 and as long as price is above this level, bulls remain in full control of the trend.

In Ichimoku cloud terms, trend remains bullish. Price has pulled back towards the tenkan-sen (red line indicator) and so far is respecting it (support by tenkan-sen at $1,570). As long as the daily close is above $1,570 trend is clearly bullish. A close below it will open the way for a pull back towards $1,550 and maybe even towards the Kumo. So the area of $1,570-67 is key for the short-term trend.