FX.co ★ Technical analysis of Gold for May 30, 2016

Gold price continued moving to new lows last week just below $1,200. Price remains inside the bearish channel. As I said last week the downside movement is now limited and we should wait for a bounce as price reached the 38% Fibonacci retracement of the rise from $1,045.

Blue lines - bearish channel

Price is below the tenkan- and kijun-sen (red and yellow line indicators). Price remains below the Kumo and inside the bearish channel. There is no trend reversal but I believe we are very close. Stochastic is diverging. Resistance is at $1,215. Support at $1,200-$1,190.

Gold price reached the 38% Fibonacci retracement. This is an important support. Next important support is the Kumo upper boundary and the 50% retracement at $1,177. Price should bounce soon but only as part of a bigger correction that will eventually push price towards $1,150.