Technical outlook and chart setups:
Gold has rallied to the level of $1,075.00 during the day and is expected to take out resistance at $1,080.00 as well, after a dip fall at $1,066.00. The metal is testing its immediate line of resistance as seen on the chart, and a breakout here will be the first sign of a potential reversal. It would be then confirmed that the metal has formed an interim low at $1,052.00. Immediate support is seen at the level of $1,052.00 followed by $1,030.00 and lower, while resistance is seen at $1,080.00 followed by $1,090.00 and higher. Please note that prices could head towards $1,040.00 in the near term.
Trading recommendations:
Initiate long positions now with stop at $1,048.00, a target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com