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FX.co ★ Technical analysis on Gold for June 18, 2018

Technical analysis on Gold for June 18, 2018

Gold price has broken through our support levels and reached our lower target in the $1,275-80 area. Last week, we were worried that a break below $1,290 would lead to a test of $1,280 and probably give a new lower low. I was bullish and still remain bullish for the longer term, but the market showed us a decline, so we should protect our longs.

Technical analysis on Gold for June 18, 2018

Red line - triangle

Blue line - support

Yellow line - bullish divergence

Gold price in the short-term support is at $1,278 and next at $1,262. The RSI is diverging while the price is marginally below the 61.8% Fibonacci retracement. Last week, once the triangle pattern broke out and Gold got rejected once again at the $1,307-$1,310 area, things were not looking good for Gold. Inability to break the resistance was followed by a rejection and new lower lows. Gold has resistance at $1,295. Only a move above this level could increase the chance of a major low. Longer-term view remains bullish for a move towards $1,400-$1,450.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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