Gold technical analysis for March 18, 2016

Gold price is consolidating near its highs but below a short-term resistance. One more new high is possible towards $1,300, but I expect the next big move to be a decline towards $1,200-$1,150.

Gold price is between the 61.8% and 78.6% Fibonacci retracement levels. Price is above the Kumo (cloud). The short-term support is at $1,255 and the resistance at $1,273. If price breaks below $1,225, we should see a push towards $1,150. Gold has probably made a long-term low and reversal at $1,045, but now the first leg up has most probably finished.

Gold price has broken above the weekly Kumo (cloud), and this confirms my bullish view for a long-term reversal. I expect Gold price to make a deep retracement even towards $1,100 before the next bullish move starts. Most probable target for the big pull back is the 61.8% retracement near $1,140.The material has been provided by InstaForex Company - www.instaforex.com