Gold price has hit the upper triangle boundaries and has stopped its upward move as expected. No break out has been in Gold price yet. It is very possible to see the lower triangle boundaries now. Gold has short-term resistance at $1,308 and short-term support at $1,294. If support at $1,294 is broken we should expect Gold price to move towards the lower triangle boundaries at $1,284.
Gold price still is above the Ichimoku cloud. But the cloud is very thin and this means that Gold price is trading in a tight range. Investors could choose to trade in favor of the triangle or wait for a breakout. This means that either investors sell near the upper triangle resistance or buy near the lower triangle boundaries, or wait for a break out.
Gold price is still expected to move towards the 50%-61.8% retracement, but we see no buying power as the weakness in EURUSD is affecting Gold price negatively. If EURUSD were to rise again above 1.3770 we could expect Gold to move above strong resistance at $1,315. Otherwise, if Dollar continues to strengthen, we could see support at $1,270 break. Long-term view remains bearish, however we should respect price action before taking any position. As long as price is below $1,315 I favor short positions targeting $1,294 and $1,285. If support at $!,275 is broken we should see more selling pressures.
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