Gold price ended last week on channel support. With Fed putting pressure on the Dollar Gold price opens higher in early Monday trading but still below key cloud resistance. It is important for bulls to break above the cloud otherwise we should expect new lows.
Red lines - bullish channel
Gold price is trading around $1,550 at the open of the early Monday session. Gold price could pull back towards Friday's levels before continuing higher, if Dollar weakness remains.
In Ichimoku cloud terms Gold price has a major resistance at $1,570 that must overcome. Staying below $1,570 would be a bearish sign and would push Gold price below $1,500. Breaking above $1,570 will push price towards $1,600 which the next resistance. Bulls want to see price first break above the cloud and start making higher highs and higher lows. The Chikou span is below the past price candlesticks and with resistance confirmed at $1,570, bulls need to break above it. The tenkan-sen and kijun-sen are still above the cloud but with negative slopes. So bulls have a lot of work ahead of them. Very interesting week ahead.
