Gold is trading at $1,857 level, far below the $1,880 former low, static support showing a downside perspective. You can notice that the price is moving down inside a down channel, technically, the major downside target remains at the downside line of the descending channel.
As you already know from my previous analyses, Gold is somehow expected to drop further after its breakdown below $1,900 and $1,880 levels. The price has turned to the downside after breaking and stabilizing below the major uptrend line.
- GOLD Trading Tips
We cannot exclude a temporary bounce after the last drop. So, a comeback towards the $1,880 or higher at $1,900 could bring a selling opportunity. Also, a drop below $1,847 today's low could suggest selling as the price of gold could extend its downside movement.
The $1,800 is seen as an important downside target. Gold could approach and reach it if the US Dollar continues to appreciate versus the Euro. The bias will remain bearish on the H4 chart as long as the rate stays below $1,900 and under the channel's upside line, downtrend line.
