Technical outlook and chart setups:
Gold had spiked towards $1,275.00 level during New York session before retracing lower. The metal is trading at $1,262.00/63.00 levels at this moment of writing and should be looking to push higher towards $1,280.00/90.00 levels from here. Please note that the metal is just around the vicinity of past resistance turned support. The wave structure also indicates that the counter trend rally is expected to terminate around the past support turned into resistance at $1,304.00/10.00 levels, which is not shown since a shorter time frame is presented here (1 hour). Prices are testing the fibonacci 0.50% support of the recent rally as depicted here and a bullish reversal is expected any moment. It is recommended to remain flat now and look to sell around $1,300.00/10.00 levels again, while aggressive traders should remain long with risk below $1,240.00. Immediate resistance is now seen at $1,305.00/10.00 levels, while support is at $1,255.00 levels respectively.
Trading recommendations:
Remain flat for now. Aggressive traders remain long now with stop at $1,240.00 levels, targeting $1,310.00.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com