FX.co ★ Short-term Ichimoku cloud indicator analysis of Gold for August 24, 2020

Gold price continues to trade around $1,950-$1,930 area. Bulls have not managed to break above $1,950 and the rejection/ weakness at $1,950 increases the chances of breaking below $1,920-25 support.

In a previous analysis we noted the bearish Head and shoulders pattern and we noted the importance of $1,925-20 support zone. Today using the Ichimoku cloud indicator we get another warning signal. Price is breaking below the tenkan-sen and the kijun-sen (red and yellow line) indicators. This is a bearish sign. Also the tenkan-sen (red line indicator) is about to cross to the downside and below the kijun-sen (yellow line indicator). This will also be a bearish sign. All the above point to the increased chances of price pushing towards the cloud support at $1,880-$1,830. As long as we trade below today's highs we are short-term bearish.