Gold failed to stay above the uptrend line signaling a potential downside movement. A break below the uptrend line indicates that the upward movement could be over.
It's traded at 1,782.62 above 1,781.70 today's low. A drop below today's low could signal a further decline in the short term. The selling pressure is high as long as XAU/USD stays under the uptrend line and below the downtrend line.
Trading Conclusion
Gold could develop an important downward movement if it drops below 1,781 today's low and most important below 1,780.00 psychological level. The next lower low of 1,771.98 is seen as a potential downside target.
The downside scenario will be invalidated if Gold jumps and stabilizes above the downtrend line.
The material has been provided by InstaForex Company - www.instaforex.com