Technical outlook and chart setups:
Gold continues its drop lower as expected earlier and hits yet another low today around $1,207.00 levels before pulling back. The metal is seen to be trading at $1,215.00 levels for now, looking to consolidate before dropping to $1,190.00 levels. According to the structure presented here, the metal could rally towards $1,227.00 levels from here, before reversing lower. Please note that $1,227.00/28.00 is also the fibonacci 0.382 resistance of the recent drop from $1,260.00 to $1,207.00 levels respectively. It is recommended to hold short positions and look to add further with risk at $1,245.00 levels. Immediate resistance is at $1,230.00 levels while support is seen at $1,190.00 levels respectively.
Trading recommendations:
Remain short, move stop to $1,245.00 levels, target is $1,190.00.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com