FX.co ★ Gold price turns lower

Gold price is trading below $1,590 and price is approaching our first short-term target of $1,570. Price has reversed as initially expected. The new higher high scenario with another bearish divergence did not come as price broke below short-term support.

Gold price is following our latest analysis. Gold price closed below the kijun-sen and gave us another bearish signal. Price is heading towards the Kumo (cloud). This bearish reversal is unfolding now. If the entire upward move from $1,450 was just a relief rally, then a major top is in at $1,644 and we should not see price break above the short-term resistance at $1,632.

Green rectangle - major support

Yellow line - target area if price breaks below green rectangle

Red lines - bullish channel

Pink line - RSI resistance

Gold price is reversing below the 61.8% Fibonacci retracement. Again this Fibonacci area has proved an important turning point. Gold price is expected to move lower as we explained in previous posts towards $1,570 at least. Our second target is at $1,530. Breaking below $1,530 will increase the chances of moving below the green support area and approaching the yellow rectangle area.