Gold price is trading above $1,850 once again. Short-term trend is vulnerable to more downside as price has started making lower lows and lower highs. This can be clearly seen in the 4h chart. As long as price is below the red downward sloping trend line that connects recent highs, price will be vulnerable to more downside.
Black lines- Fibonacci retracements
Blue lines- possible upside move
Gold price is challenging the red downward sloping resistance trend line. Price has so far retraced 38% of the entire decline from $1,997. If bulls manage to break above $1,859, then we will get a new bullish signal with $1,900 as the target. At $1,900-$1,910 we also find the major 61.8% Fibonacci retracement level. Support remains key at recent low at $1,827. Failure to hold above it, will lead price towards $1,800.
