Technical analysis of Gold for July 12, 2016

Gold price pulled back towards the short-term support level of $1,350. As long as the price stays above it we could see another move higher towards $1,400. A deeper correction is not out of the question as the expanding triangle scenario is still valid.

After the upward move to $1,375 Gold price pulled back and retraced 61.8% of the rise after the NFP announcement and is also approaching the 4-hour cloud support. Support is at $1,350 and if it breaks we could see a deeper correction below $1,335 last Friday's lows.

The weekly candle is a rejection candle that could at least pull back the price towards $1,280 if the expanding triangle scenario plays out. Even if Gold price retraces back towards $1,200 the longer-term reversal signal will remain valid. So it is a matter of a short-term risk and position management.The material has been provided by InstaForex Company - www.instaforex.com