Gold price ended last week right on top of the Kumo. Price has made a reversal lower and price closed right above the Daily Kumo. Daily trend in Ichimoku cloud terms remains bullish. Price is now challenging the cloud support and holding above it is crucial for the bulls.
On Friday Gold price also close below the tenkan-sen (Red line indicator). The tenkan-sen now provides resistance at $1,787. Bulls need to make at least one close above this level in order to regain the bullish momentum lost when price turned lower towards $1,780. Bouncing off the Kumo would be an ideal bullish scenario followed by a break above the recent highs. As long as price is above the Kumo bulls are in control.The material has been provided by InstaForex Company - www.instaforex.com