FX.co ★ Gold price bounces towards resistance trend line

Gold price is trading at $1,727 and is now challenging important short-term resistance. At this trend line price got rejected recently and if bulls manage to recapture the $1,720-40 level, then the road for $1,780-$1,800 is open. Bulls do not want to see another rejection at current levels.

Red line -resistance

Green lines - bearish channel

Gold price is challenging a major short-term resistance. This is now the big test for the short-term trend. Will gold break resistance? It is important for bulls to break above $1,740, otherwise the danger for a new lower low is still there. Even if price breaks above $1,740, we should not ignore the medium-term bearish channel Gold is in.

The Ichimoku cloud indicator confirms in the 4 hour chart the importance of the $1,740 level. Bulls need to break above the cloud in the 4 hour chart. The cloud resistance is at $1,740. Breaking above it will be an important win for bulls. Staying above the cloud will be more difficult but for now let's focus on the cloud resistance just above current levels.