23.08.201609:10 Forex Analysis & Reviews: Technical analysis of Gold for August 23, 2016

Long-term review

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Gold price bounced off the 61.8% Fibonacci retracement and is back testing the broken triangle area at $1,340-50. I believe this is a backtest and price will reverse downwards towards $1,300 over the coming days.

Blue lines - triangle pattern

Red line-long-term support

Gold price held support at $1,330 where the 61.8% Fibonacci retracement is found. Price is below the 4-hour Kumo and is back testing the lower triangle boundary. I expect to see a rejection around $1,345-50. A move back above $1,350 will make us re-shape the triangle pattern and cancel the downward break signal.

Blue lines - bullish channel

The weekly candle is testing the weekly tenkan-sen (red line indicator). A weekly close below it will open the way for a push lower towards the weekly kijun-sen (yellow line indicator). Price remains above the weekly cloud and inside the blue upward sloping channel. I remain longer-term bullish Gold but there are a lot of chances of making a deep correction below $1,280.

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