Technical analysis of Gold for April 1, 2016

Gold price continues trading inside the downward sloping channel. Gold is in a corrective phase that is expected to end around $1,100-$1,150 before resuming higher. However, I would not rule out a re-test of the recent highs before resuming a short-term bearish trend.

Blue lines - downward sloping channel

Gold price is testing the 4 hour Kumo (cloud) resistance. A break above $1,250 will open the way for a re-test of the $1,283 highs and why not produce one more final high near $1,300. Support is at $1,220. If it is broken we are going to test $1,200. A weak dollar move could help push price of Gold towards $1,280 after the NFP announcement.

On a weekly basis, Gold price remains above the weekly Kumo (cloud) and the pull back has not reached the 38% Fibonacci retracement yet. Overall, despite short-term volatility that might arise from today, I expect Gold price to move towards $1,150-$1,100 to end the downward correction. This does not mean that I prefer short positions. I prefer to wait to go long at the $1,150-$1,100 area. This is because there are a lot of chances to see a big bounce today towards $1,280.The material has been provided by InstaForex Company - www.instaforex.com