Technical outlook:
Gold has reached our minimum expectations of $1530 levels. The metal has printed $1535 highs yesterday and could push through $1540 levels as well before giving in to bears again. Looking at the wave structure, the drop from $1557/58 through $1482 earlier was an impulse. It has been followed by a complex correction (3 waves), A-B-C (3-3-5), towards recent highs. Also note that gold faces Fibonacci 0.618 resistance of the previous drop as well. Ideally, we should see a bearish reversal that could extend itself towards $1450 levels. Resistance remains at $1560 levels for now and until prices remain below that, a bearish reversal should be expected. Also note that Fibonacci convergence is seen at $1540 levels. Hence, a last push towards $1540 cannot be ruled out. An attached video should explain the A-B-C counter trend rally that has been met. Watch out for another update soon.
Trading plan:
Remain short against $1560, add further at $1540, target below $1450.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com