FX.co ★ Gold challenges major trend line support

Gold price is trading below $1,700 and remains in a bearish trend. Price continues making lower lows and lower highs. Gold price is now testing a trend line support coming from $1,270 touching to major lows. Bulls hope this will be the third major low and price will reverse to the upside.

With the RSI on the Daily chart just reaching oversold levels, price is challenging the support trend line. A bounce from current levels is justified and bears need to be cautious and not greedy. Trend remains bearish and a bounce towards $1,725 is justified. There is no sign of an important low yet nor a trend reversal signal. Any bounce is considered a selling opportunity. However $1,670 is important monthly support so bears from now on should not be overconfident this decline will continue forever.