Gold: The trendline break still holds

The yellow metal 4-hour chart shows that the trendline break is still holding and yielded good results for traders on the short side, FXStreet’s analyst Rajan Dhall reports.

Key quotes

“The momentum of the move seems to have come up short slightly as the relative strength index indicator produced a failure swing (hidden divergence).”

“It can be a short term side that the bearish momentum has faltered but it seems as long as the trendline break remains intact the short trade is still on.”

“If the resistance of $1710.00 break it could indicate that the price might retest the highs and conversely on the downside the resistance of $1674.88 breaks a move lower would look more likely.” 

“In terms of downside targets, the next major support beyond that zone lies at $1637.50.”