Technical outlook and chart setups:
Gold is seen to be trading at $1,085.00/86.00 levels for now, looking to form a base around $1,078.00/80.00 levels as expected before rallying further. The metal has potential to rally through $1,125.00 and $1,136.00 levels before reversing lower. Please note that the current drop towards $1,080.00 levels is just a counter trend and the metal should be seen forming bottom around $1,080.00 levels. It is hence recommended to initiate 50% long positions now and remain at $1,078.00/80.00 levels with risk at $1,060.00. Immediate support is seen at $1,075.00 levels, while resistance is seen at $1,108.00 levels.
Trading recommendations:
Long 50% now and remain around $1,080.00, stop is at $1,060.00, target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com