Technical outlook and chart setups:
Gold has been hammered down to $1,225.00/26.00 levels as seen here. Please note that the metal is looking to stall around the fibonacci 0.786 support of the entire rally between $1,182.00 ti $1,388.00 levels as depicted here. A bullish bounce could be expected here, but we shall wait for a daily confirmation signal. On the flip side, a break below $1,225.00 would open doors to re-test December 2013 lows at $1,180.00 levels again. The overall weekly structure still indicates larger consolidation with support around the $1,180.00 region. A break below $1,180.00 would be extremely bearish, and the metal could test $1,030.00/50.00 levels before reversing.
Trading recommendations:
Remain flat for now.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
