Gold price has reached our bearish short-term target

In our previous analysis we noted that the bearish scenario would have little chances of success if price did not break below $1,982. Breaking below this level will confirm our bullish view and would push price towards $1,910-30.

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Red rectangle - resistance

Green line - support

Green rectangle - target if blue rectangle fails to hold

Blue rectangle- broken support

We have exited our short-term bearish positions as price has reached our target area. Gold price remains inside the medium-term bullish channel. The short-term top we saw at $2,015 has provided us with a nice short-term bearish profit. Pushing lower towards $1,900-$1,880 is not out of the question and should not be ruled out. However we still consider this as a buying pull back for Gold price. We wait patiently to identify a bullish setup before jumping back in the bullish short-term train. Our longer-term view remains bullish as long as price is above $1,860. Breaking below this level will open the way for a move below $1,800.

The material has been provided by InstaForex Company - www.instaforex.com