Gold Price Analysis: Bulls push bears back over the $1,900 line, dollar can't catch a break
- The US dollar is crumbling below the 93.50 level and is on its last legs.
- Gold has pushed the bears back and the price retreats back above $1,900 to form new support.
- Gold bears go back to the drawing board and await for high probability conditions.
The price of gold is now testing the counter trendline with the $1,906/10 structure in its sights on a move which will have stopped out bears at last resort resistance.
The new support structure will need to be broken before committed bears can step back in.
The following shows the 4-hour analysis which complements earlier updates and analysis:
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As illustrated, the price is well on its way to a critical resistance area had has formed new support structure.
Bears will need to see this support broken and retested as resistance before committing to any potential downside again.
All aboard!
Meanwhile, the US dollar cannot catch a prolonged bid outside of the channel and from the support structure:
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Wave-5 is not ready to launch as the price starts to moves sideways across the support structure, which makes sense considering it needs plenty of bidders on board for the long haul:
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Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
