Technical outlook and chart setups:
Gold dropped lower to the $1,160.00 levels last Friday producing a bearish engulfing candlestick pattern and thus indicating further downside. The metal is pulling back for now, but intraday rallies should be capped below the $1,180.00 levels for now. It is recommended to remain flat for now and initiate long positions on a drop at the $1,137.00 levels. Immediate support is seen at the $1,150.00 levels, followed by $1,140.00, $1,100.00 and lower, while resistance is seen at the $1,180.00 levels, followed by $1,190.00 and higher.
Remain flat for now, look to buy lower.
The material has been provided by InstaForex Company – www.instaforex.com