20.07.201509:41 Forex Analysis & Reviews: Gold technical analysis for July 20, 2015

Gold price broke support last week. During today's early trading, we saw stops getting hit ferociously and bringing the price to the area around $1,080. Gold price has bounced towards $1,115 but still remains below the previous long-term support of $1,130. Is the decline in Gold over? Most probably not.

Gold prices remain below the trend-line resistance and below the Ichimoku cloud. The trend remains bearish. The price collapsed as it activated sell stop orders earlier today and moved towards $1,080. The bounce so far has managed to retraced nearly 38% of a decline, which is a usual and normal bounce. The trend should continue lower. A daily close above the 38% retracement could push the price even higher towards the 61.8% retracement or even the cloud resistance.

The weekly chart remains fully bearish with both kijun- and tenkan-sen now with a negative slope and new lows. This is not a good sign although I cannot rule out a short-term bounce to test the breakdown area. So, a bounce towards $1,140 should not be excluded. In general, I would remain bearish in the long term as I believe we could see a test of $1,000.