FX.co ★ Another Gold rejection at the Kumo.

Gold price tested earlier today the lower cloud boundary at $1,802 but got rejected. Price is turning lower and a daily close below the tenkan-sen (Red line indicator) at $1,791 would be a sign of weakness. This could lead to a deeper decline towards the kijun-sen (yellow line indicator) at $1,758.

Since price is still below the Kumo (cloud), trend remains bearish. Next major support is at $1,758. Bulls do not want to see this level broken. On the other hand bulls want to see price move higher and push above the cloud. This would be a reversal signal. Until then risk reward ratio favors bears as price is close to key resistance and bears risk less than bulls.