FX.co ★ Ichimoku cloud indicator Daily analysis of Gold

Gold bulls are unable to recapture $1,850 and move back above the Kumo (cloud). Price remains vulnerable and we are now seeing a downward break. Price is moving below the Kumo (cloud) and this is a bearish sign.

The Chikou span (black line indicator) is right on top of the candlestick pattern. A move below it and especially if price breaks below recent low of $1,817, we should expect selling pressure to rise and Gold to move below $1,800 towards $1,750. Bulls need to push price above the Kumo again otherwise they will lose control of the trend.

The weekly chart remains vulnerable to a move towards cloud support at $1,750-$1,700. Price is below both the tenkan-sen and kijun-sen indicators. Bulls need to see price recapture $1,919 on a weekly basis in order to feel safe again and to forget the bearish scenarios.