Technical analysis of Gold for August 8, 2016

Gold price got rejected at resistance last Friday and made a sharp pull back towards $1.330 after the announcement of the US NFP numbers. Medium-term bullish trend remains intact only as long as price is above $1,300. Bulls need to see a reversal to the upside from current levels but not a break of the $1,300 support.

Gold price has reached below the 50% retracement of the latest rise and the 4 hour Kumo support. A reversal could occur from the 61.8% Fibonacci retracement which is important short-term support. After Friday's reversal, the importance of the resistance at $1,370-75 becomes bigger as a break above it will sure push Gold price above $1,400.

Blue lines - bullish channel

Last week's candle is a reversal candle after a rejection at a weekly resistance with oscillators turning lower from overbought levels and price support below $1,280. If the $1,300 level is broken we will surely expect Gold price to move towards $1,250 or even lower. Bullish medium-term trend is challenged.

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