Technical analysis of Gold for July 13, 2016

Gold continued lower yesterday breaking short-term support and the NFP low at $1,335. The short-term trend is bearish but a bounce back towards $1,350 is justified for today. However, it seems that gold is heading towards the $1,300 level where the 38% Fibonacci retracement of the latest rise is found.

Blue lines - bullish channel

The gold price remains inside the bullish channel and has entered the 4-hour Kumo (cloud). The short-term trend is not bullish. The trend is about to change to bearish, and a confirmation will come once the price breaks below $1,328. Short-term resistance is at the $1,350-60 area.

The entire rise from $1,045 lows could very well be complete. A pullback towards the 38% or even 61.8% Fibonacci retracement is very possible. A pullback towards the weekly Kumo is possible if a top is in place. Current price action with the rejection at the upper boundary of the megaphone pattern is a bearish sign. My longer-term view remains bullish.The material has been provided by InstaForex Company - www.instaforex.com