FX.co ★ Gold vulnerable to a new low towards $1,750-40

Gold price remains in a bearish trend. In our previous analysis we noted the first bullish divergence warning and the first sign of a possible trend reversal. This trend reversal has still not been verified as price continues making lower lows and lower highs.

Blue lines - Fibonacci retracements

Gold price is trading right above the 61.8% Fibonacci retracement. Despite the bullish RSI divergence, there are increased chances of seeing a new lower low towards $1,750-40 area. After a second bullish divergence we will have more chances for a reversal. Resistance is now at $1,795 and bulls need to recapture that level. Bears remain in control of the trend.