Technical outlook and chart setups:
Gold has dropped below $1,170.00 levels, taking us out on the remaining long positions. Also please note that the counter trend support line has been broken as well and the metal has made intraday lows at $1,142.00 levels as seen here. Immediate support is seen at $1,130.00 and lower while resistance is fixed at $1,208.00 (interim), followed by $1,235.00, $1,255.00 and higher respectively. As seen here, the metal is bouncing off the fibonacci 0.786 support of the entire rally between $1,130.00 and $1,208.00. A bullish signal appearance here can be bought, with a risk below $1,130.00. The metal would also face resistance at $1,185.00, which is a back side of the trend line support.
Trading recommendations:
Remain flat for now. Looking to buy on a bullish reversal.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
