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08.03.202122:34 Forex Analysis & Reviews: Gold challenges major trend line support

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Gold price is trading below $1,700 and remains in a bearish trend. Price continues making lower lows and lower highs. Gold price is now testing a trend line support coming from $1,270 touching to major lows. Bulls hope this will be the third major low and price will reverse to the upside.

Red line - major support trend line

With the RSI on the Daily chart just reaching oversold levels, price is challenging the support trend line. A bounce from current levels is justified and bears need to be cautious and not greedy. Trend remains bearish and a bounce towards $1,725 is justified. There is no sign of an important low yet nor a trend reversal signal. Any bounce is considered a selling opportunity. However $1,670 is important monthly support so bears from now on should not be overconfident this decline will continue forever.

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