FX.co ★ Gold tests major trend line support.

Gold price has broken below $1,800 and is now trading just above the $1,780 level. Price is challenging the major upward sloping support trend line coming from the $1,684 low. Gold price was expected to pull back towards this support after the rejection at $1,854.

Green line -support

Gold price is very close to the support trend line. This is not the time to be opening short positions because we are above key support. A reversal and bounce off the green support trend line is justified. Bears need to be cautious in case we get a reversal signal. In the near term if bulls manage to recapture $1,800, we will then get our first reversal signal.