Technical outlook and chart setups:
Gold has dropped to $1,170.00 levels, as was expected and discussed earlier. The metal is trading at $1,176.00 levels for now and might be preparing to stage a rally from here on. Please note that Fibonacci 0.618 support is also around the current price action. A bullish rally from here would bring back bulls under control and extend up to at least $1,255.00 levels. It is recommended to hold long positions and also look to add further at the current levels. Immediate support is seen at $1,160.00/65.00 levels, followed by $1,140.00, $1,130 and lower while resistance is seen at $1,220.00/25.00, followed by $1,235.00, $1,255.00 and higher respectively. Bulls are expected to remain in control untill prices remain above $1,140.00.
Remain long, stop below $1,150.00, target is open.
The material has been provided by InstaForex Company – www.instaforex.com