Gold price breaks the support – Analysis - 08-06-2020

Gold price broke 1691.10 level strongly and ended last week below it, to fall under expected correctional negative pressure, supported by the EMA50, but we notice that the price leaned on a horizontal support base located at 1670.80, to rebound bullishly and approaches testing 1691.10 that turns into resistance now, supported by the positive signal provided by stochastic, to hint the price attempt to regain the main bullish trend.

Therefore, this contradiction between the technical factors makes us prefer staying neutral until we get clearer signal for the next trend, noting that breaking 1670.80 will put the price under more negative pressure to head towards testing 1646.00 as a next correctional target, while breaching 1691.10 represents the key to regain the bullish trend and head towards positive targets that start at 1764.00.

The expected trading range for today is between 1670.00 support and 1720.00 resistance.

The expected trend for today: Neutral