Black lines- Fibonacci retracements
Blue rectangle- resistance
Gold price made a new lower low today at $1,706 but bulls stepped in and have pushed price back above $1,730. Price has managed to rise as high as $1,744 where short-term resistance is found. So far we see a price rejection. Gold has resistance where the blue rectangle is as shown in the 4 hour chart. So far price has retraced 23.6% of the entire decline from $1,856 high. If bulls manage to push price above the blue rectangle, then we should expect to see the 38% Fibonacci level being tested. Support is at $1,720. Failure to hold above this level, will lead Gold to lower lows.
