FX.co ★ Ichimoku cloud indicator analysis of Gold

Gold price made an important price drop yesterday that has given a lot of hopes to bears. Price not only broke below $1,920 it also fell below $1,900 challenging $1,850 lows. Price so far respects this important low, but the chances are if Gold price revisits the $1,850 level, we should expect heavy selling and a move towards $1,800 and lower.

Applying the Ichimoku cloud indicator on the weekly chart we confirm the importance of the $1,875-50 area. The kijun-sen (yellow line indicator) is at $1,875 while the recent low at $1,850. Breaking below this support zone will bring price towards the Kumo (cloud) around $1,650.-$1,700. So it is important to see if support holds over the next few sessions.