Gold price got rejected at cloud and trend line resistance. Price is breaking down below important cloud support and I expect to the lower trading range boundary around $1,670 to be challenged soon.
Black line -resistance trend line
In our last analysis we warned that price was at important resistance levels. Only a move above $1,710-20 would open the way for a move higher. A rejection would put additional pressure to price. Gold price is trading again below the 4 hour Kumo. This is a bearish sign. I expect the $1,670 to be tested soon. As we have been saying, Gold price is vulnerable to a move lower. The current price actions strengthens the bearish view since bulls were unable to break the $1,700-$1,710 resistance by the Kumo (cloud). If bulls manage to respect $1,670 support area, a break above $1,700-$1,710 would be a big step towards making new 2020 highs. Until then I remain bearish. We were bearish (or at least neutral) when Gold was trading around $1,740, looking for a move towards $1,600. We continue to favor this scenario.
