10.10.201609:37 Forex Analysis & Reviews: Technical analysis of Gold for October 10, 2016

Gold price is bouncing off the $1,250 area as expected. Price remains inside a bearish channel, so a short-term trend remains bearish as long as price is below $1,270. A backtest of $1,300 is very possible but we might first see $1,240 again.

Gold price has bounced off the 78.6% Fibonacci retracement of the rise from $1,200 to $1,375. Price remains inside the bearish channel and below the 4-hour Ichimoku cloud. A backtest near $1,290-$1,300 is possible before the downtrend continues. I continue to believe that we are in a corrective phase of the rise from $1,045 to $1,375.

In the weekly chart above you can see Gold price has reached the 38% Fibonacci retracement of the entire rise as we expected once price broke below $1,300. A bounce is justified now. Overall I remain long-term bullish expecting Gold price to complete the entire downward correction between $1,200-$1,150.