27.01.201511:01 Forex Analysis & Reviews: Gold technical analysis for January 27, 2015

Long-term review

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Gold price remains in a short-term downtrend. The price, as I mentioned in previous posts, is in danger of falling towards $1,260 or even $1,220. It seems that this correction has started. Support at $1,270-75 is critical for the short-term trend.

Red line = support trend line

Gold price is breaking below support trend line, and the Ichimoku cloud is now above the current price on the 30-minute chart. Short-term trend is bearish and, I believe, we are heading towards the 38% retracement just above $1,250. I prefer to stay neutral and avoid trading current price action as there is no clear structure.

On the daily chart that I posted yesterday I expect price to move towards the tenkan-sen support near $1,265. If we break below this level we should expect price to move towards $1,220. Trend is short-term bearish.

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