FX.co ★ Gold fresh new lows as bulls fail to produce a strong bounce above $1,740.

Red lines -lower lows trend line

Blue line- resistance trend line

Gold price is trading just above $1,700 but earlier today we saw price fall even below $1,700 as we expected. Trend remains bearish and as price is making lower lows, the RSI continues making lower lows as well. There is no sign of a weakening downtrend. Yes we might see a bounce higher but most probably it will be a counter trend move. The RSI has entered oversold levels. A bounce higher is justifies and expected. So far no reversal signal. Price could bounce towards $1,750-70 area as we mentioned in previous posts. Bears need to be cautious as it seems that the downside potential is very limited in the short-term.