05.05.202021:34 Forex Analysis & Reviews: Short-term Ichimoku cloud indicator analysis of Gold

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Gold price remains inside the trading range we have been talking about the last few days. Price has entered the 4 hour cloud area and is trying to break above key resistance at $1,710-20. Daily trend remains bullish. We continue to feel Gold price is vulnerable to the downside.

Red lines - trading range

Black line - short-term resistance trend line

Gold price is inside the 4 hour cloud. This implies that trend in the 4 hour chart is neutral. Price has also touched the black downward sloping trend line 3 times so I believe it is an important factor to keep in mind. Whether we see a rejection or a break out, $1,710 is a confluence of resistance both by pure technical analysis and also confirmed by the Ichimoku cloud indicator. Breaking above the cloud would be a bullish sign. This would imply a move to $1,740 and higher is possible. On the other hand a rejection here and a move below $1,690 will increase dramatically the chances of a new lower low towards $1,630.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.