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Gold price is trading at $1,785 as price got rejected at the cloud resistance. In our previous posts we warned traders that price was approaching important cloud resistance at $1,810 area. Price is now pulling back towards the tenkan-sen.
Gold price is below the Kumo (cloud) in the Daily chart. Price remains in bearish trend according to the Ichimoku cloud indicator. Support is found by the tenkan-sen (red line indicator) at $1,780. In previous posts we talked about the bullish flag break out and that bulls do not want to see price break below $1,775. So the area $1,780-75 is important short-term support. Bulls do not want to see price below this level. On the other hand if price pushes inside the Kumo, this would be a sign of strength increasing chance of a trend reversal.
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