FX.co ★ Technical analysis on Gold for June 16, 2020

Gold price has bounced off the cloud support. This was expected as we noted in our past analysis. Gold price has respected the $1,700 support level and shows signs of a coming break out above the two month trading range it is in.

Blue lines -trading range

Red lines - break out targets

Black line- RSI Resistance

Gold price is challenging the upper boundary of the trading range. The RSI is testing its downward sloping trend line resistance. If the RSI and price make higher highs then we should expect price to move towards $1.780 which is our first target and next towards $1,825. Support is found at $1,700. Bulls do not want to see price break below it. A rejection at current levels could lead to a break below $1,700, so this is something bulls do not want to see.

As long as price is above the cloud, short-term trend remains bullish. Price so far has back tested the cloud and bounced strongly off of it. Price has so far respected the cloud and holds above the tenkan-sen (red line indicator). If bulls manage to make a higher high above $1,750 then we will have a strong bullish signal,