Gold price is trading below $1,750. Short-term trend remains bearish after our bearish signal when price broke support of $1,790. Gold price is now challenging important weekly Fibonacci support.
Green lines -Fibonacci retracements
Blue lines -Fibonacci extensions
Gold price is testing the 38% Fibonacci retracement of the entire upward move from 2015 lows. Breaking below the 38% Fibonacci retracement will open the way for a move towards the 50% level. Breaking below the black trend line support, the formation is open for a 100% extension lower of the first leg down. This gives us a target around $1500 where we also find the 50% Fibonacci retracement. As long as price is below $1830-40, we remain bearish. No sign of a bottom or a reversal in any time frame.
