Blue line- support trend line broken
Red lines- expect decline
green lines- Fibonacci retracements
Blue horizontal lines- Fibonacci extension targets
Gold price is trading around $1,750 after reaching as high as $1,760 resistance earlier today. Price has formed a lower high after bouncing off $1,727. There are increased chances that Gold's price starts a new downward move equal to the first one. Gold remains vulnerable to a move towards $1,700 where we find the 100% extension of the first leg down and the 50% Fibonacci retracement of the rise from $1,616. Major support and turn around level is the 61.8% retracement at $1,680. As long as price is above this level, bulls have hopes for a new upward move that will eventually push price above $1,790. In the near term Gold remains vulnerable to more downside.
