FX.co ★ Technical analysis of Gold for April 22, 2016

Gold gave an important bearish signal yesterday. It initially broke above important resistance of $1,260 following the dollar's weakness while ECB president Mario Draghi was at the scheduled press conference, but as time passed, the dollar firmed against the euro. Gold prices made a sharp reversal.

Black lines - triangle pattern

Gold remains above the Kumo but the candle pattern on the 4-hour chart is bearish as the price could not stay above $1,260. Support is at $1,235 now. Breaking below the Kumo support will open way to a move at least towards the lower triangle boundary around $1,215.

The long-tailed daily candle from yesterday is a bearish reversal sign and a false breakout. The price, however, remains above the daily Kumo (cloud) support. The kijun-sen daily support is at $1,239 and a close below that level will open way to a move towards $1,190. I remain bearish in Gold as long as we stay below yesterday's highs.