Gold price is back testing the break down area from the trading range. Price remains in a bearish trend. Yesterday we saw the first warning for bears as the RSI did not make a new lower low as price did.
Green lines - trading range
Yesterday we saw price exiting the trading range and making new lows. However the RSI did not follow and provided us with a bullish divergence. This is only a warning and not a reversal signal. Resistance remains strong between $1,780-$1,800 and as long as price is below this level we expect price to continue lower towards $1,740.
The material has been provided by InstaForex Company - www.instaforex.com