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16.08.201916:13 Forex Analysis & Reviews: Gold price tests short-term support

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Gold price has pulled back towards the key short-term support at $1,510. Price is challenging short-term support levels. It is important to see where the weekly close of Gold will be today and we might get some clues for next week.

Blue rectangle -short-term support

Magenta line - support trend line

Green line - major support trend line

Gold price shows weakness signs. We talked in previous posts about the bearish divergence signs and the possibility of a major reversal, but for now we have not seen it yet. So far we only have warning signs. Price is now testing short-term support at $1,510 where we find the upward sloping magenta trend line and the horizontal blue rectangle. Breaking below this support area will be a bearish sign. This could lead to a deeper decline towards $1,450. So traders need to be very cautious. If $1,500-$1,510 fails to hold, bears will have the upper hand as long as price is below it.

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