FX.co ★ Gold Technical analysis for September 16, 2014

Gold price is making a short-term upward bounce from $1,225 and is testing short-term resistance at $1,240. The trend remains bearish and we expect the lows at $1,180 to be tested soon. In Ichimoku cloud terms, it is more possible to see the downtrend continue than have a bigger trend reversal.

Red line = resistance

Blue line = support

Trend remains down. Price is making lower lows and lower highs. Price is below the resistance trend lines and below the cloud. Short-term support is found at $1,230. Breaking below that level will give us a short-term sell signal with $1,220-$1,215 1st targets.

Red line = resistance

Blue line = support

The daily chart above continues to be bearisH. An upward bounce towards $1,250 could be justified but as part of a corrective move. The longer-term trend remains down and we expect Gold to break $1,180 and push towards $1,000. Very important support at $1,180 will be difficult to be broken with one go. Trend reversal on a daily basis would occur if price would move above $1,300.