Red lines - bearish channel
Black lines- bearish channel short-term
Blue lines- Fibonacci retracement levels
Gold price is still in a bearish short-term trend. Price is trading around $1,817 making lower lows and lower highs. The decline from $1,946 is very close to completion. A bounce higher is expected. Downside potential is limited. Price is approaching the lower boundary of the medium-term bearish channel. There we also find the 61.8% Fibonacci retracement support. Bears remain in full control of the trend. Our expectation is that price will make a bounce soon. Short-term resistance is found at $1,830. As long as we trade below this level Gold price is vulnerable to more downside. A break above this level will be the first sign of a short-term trend reversal.
