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18.04.201213:32 Forex Analysis & Reviews: USD/CAD Elliott Wave Count for April 18, 2012

Long-term review

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Gold price made a break down on Friday by breaking below important short-term support and pushed below $1,230. Today we observe a bounce around the $1,240 area, but there is a bearish flag pattern being formed. Gold price could still fall lower towards $1,220 where the 61.8% retracement is found.

Green lines = bearish flag pattern

Gold price is forming a bearish flag in the short term. Confirmation of this pattern will come with a break below $1,233 and with $1,200 as a possible target. Breaking above $1,245-46 will cancel this bearish formation but not the overall bearish picture.

Gold price has broken through the 38% retracement last week and the bearish reversal is pushing prices lower towards the 61.8% retracement. Important daily support below $1,220 is the level of $1,190 where the Ichimoku cloud is found. Trend is bearish for short term as long as the price is below $1,265-70.

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