Technical outlook and chart setups:
Gold looks to have completed its first leg of correction at $1,225.00/26.00 last week. The metal is expected to rally to $1,245.00 levels before dropping lower. The area of interest for bottom formation is around $1,208.00/10.00 levels. Please note that $1,208.00 is the fibonacci 0.618 support of the rally between $1,183.00 and $1,255.00 respectively. It is recommended to remain short for now (aggressive trade setup). Risk is above $1,255.00. The metal is correcting towards $1,208.00 for now, and a bullish bounce from there could resume rally towards $1,280.00 and higher. Support is seen at $1,220.00/22.00, followed by $1,205.00, $1,183.00 and lower, while resistance is seen at $1,255.00, followed by $1,275.00/77.00 and higher respectively.
Trading recommendations:
Look to go long again around $1,208.00/10.00.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
