Gold price has turned to a bearish short-term trend from Friday after breaking below $1,174. $1,174 was an important support level that I mentioned last Friday. The failure to hold it combined with the rejection of the Swiss referendum has pushed prices towards our short-term target of $1,140 which was reached earlier today.
Gold price has reached the 78.6% retracement of the rise from $1,130 to $1,207. The trend is bearish. Support is at $1,140 and resistance is at $1,165. I believe we have seen an important top at $1,207. As long as we are trading below it, we should expect to see below $1,130 towards $1,050 as our first target.
Red line = support
Now, when the red trend line and the ichimoku cloud are broken, short-term trend is confirmed bearish. Important resistance is set at $1,180 for the short-term trend. As I said on Friday, I remain bearish as long as price is below $1,208. Any bounce I believe is a chance to sell again Gold, preferably near $1,180.
The material has been provided by InstaForex Company - www.instaforex.com
