Gold price has started the week on a positive note despite Dollar strength. Price is bouncing towards key short-term resistance but the chances of a rejection remain high as price is still below the Daily Cloud.
Gold price is below the Kumo and below both the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). Trend is bearish. Price is bouncing and we consider this bounce as a back test. I believe it is more probable to see a price rejection and reversal lower towards the end of the week. Resistance is at $1,890-95. Support remains key at $1,859 which is last week's lows. During this week if we see the tenkan-sen cross below the kijun-sen and price remains below them, then we will have an important bearish signal.
